[WSBAPT] Bequest of property held by company

[Philip N. Jones]

I don't have a direct answer to your question, but this issue has triggered some malpractice litigation down here in Oregon.  I am not aware of any court rulings that have resulted yet.
But maybe we all need some language in our boilerplate that says that any bequest of an assets is still effective if the asset is held by an entity controlled by the testator.  Or words to that effect.
Even if you ask your client whether any of his/her assets are held in an entity, oftentimes the answer you receive is not correct.  Or the answer changes over time.  Or the facts change.
This is an issue that really needs some care.
Phil Jones

Philip N. Jones
Duffy Kekel LLP
900 S.W. Fifth Ave. Suite 2500
Portland, OR 97204
pjones at duffykekel.com<mailto:pjones at duffykekel.com>
(503) 226-1371 - office
(503) 853-1482 - cell
(503) 226-3574 - fax

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Marcus J. Fry
Sent: Wednesday, February 23, 2022 9:52 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Bequest of property held by company

Father owned a LLC and the sole asset was an airplane.  The father later executed a Will that left the airplane to daughter A with no reference to the LLC.  The residue of father's estate goes to father's three children.

My view, airplane passes with the residue of the estate.  Does RCW 25.15.006 and the definition of transferable interest, which is the member's right to receive distribution of the LLC's assets have any impact?  I don't interpret it as such because the interest is the right to receive distributions, not the right to direct distribution of a company's assets.

Thoughts?

Thank you,

Marcus

Marcus J. Fry
Attorney | Witherspoon * Kelley
mjf at witherspoonkelley.com<mailto:mjf at witherspoonkelley.com> | Attorney Profile<https://www.witherspoonkelley.com/marcus-j-fry> | vCard<https://www.witherspoonkelley.com/s/mfj.vcf>

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