[WSBAPT] Dental practice and RLT

[Nicholas Pleasants]

My general rule is to keep the PLLC on its own and not commingle it with the other assets in the RLT. The PLLC should have its own operating agreement that specifies what happens upon the demise of the dentist. If that is spelled out in the operating agreement, like any LLC asset, then it should pass outside of probate.
If you fund the RLT with an assignment of personal property, then theoretically the shares of the PLLC are assigned to the RLT, but that is a weak argument, and possibly void if the spouse is a co-trustee and not a dentist.
You might be thinking of the rule in RCW 18.100.110 that prohibits transferring the shares to a non-professional, or RCW 18.100.118 that allows the non-dentist trustee to be a director for 12-months following death (essentially for wind-down or sale of practice purposes).
Best,
Nick

Nicholas Pleasants
Owner

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Pleasants Law Firm, P.S.
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From: <wsbapt-bounces at lists.wsbarppt.com> on behalf of Kira Rubel <kira at theharborlawgroup.com>
Reply-To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Date: Wednesday, January 6, 2021 at 9:29 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Dental practice and RLT

Hello and Happy New Year!

I have a dentist client who is the sole owner of her dental practice PLLC. I recall a thread on this listserv that mentioned that PLLC's could be transferred to the owner's RLT, but only if that PLLC owner had a partner.  I cannot, for the life of me, find the RCW now, or the thread!

Thank you in advance!

Kira M. Rubel, Esq.

*Licensed in CA and WA
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