[WSBAPT] LLC vs. Will contrary provision

[Josh Grant]

I have  clients who have inherited real property.  They are putting it into a LLC.  4 out of 5 of the clients reside in different portions of the real property.  Regarding the termination upon death provision in the LLC; they are wanting it to simply say: as each member dies, their units can not be sold except for $1.00 to the LLC and the remaining members will equally own their shares.  When there is only one remaining member, that surviving member will own 100%.  I have never seen this with a LLC.  It would also have to preclude rights of members to sell their units to third parties.

I am wondering what will happen if one of them makes out a will that says “I give my units in LLC to my kids/”

Anyone ever do this?

If so any form language?

Any other problems besides the challenge regarding testamentary disposition?

Thanks

Josh

Joshua F. Grant

P. O. Box 619
Wilbur, WA 99185
509 647 5578
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