Provision In LLC Agreement Governs The Decedent’s Interest On Death

• Tuesday, March 22, 2016
• Category: Business Litigation, Wills, Trusts and Estate Litigation

The decedent owned a 50% membership interest in an LLC Agreement created in New Jersey 18 months before his death in Florida. This will poured over his residuary estate into an existing trust the beneficiaries of which were his children and his unmarried partner; decedent was estranged from his spouse. Litigation ensued between the personal representative and the surviving partner over the status of the LLC membership interest and the trial court held it to be probate property.

In Blechman v. Estate of Blechman, the intermediate Florida appellate court reversed, holding that language in the LLC agreement providing that under the circumstances of this case the membership interest would :pass to and immediately vest in” the decedent’s descendants created a valid will substitute.

Reference: Gerry W. Beyer; Wills, Trusts & Estates Blog (Sunday, June 14, 2015)

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