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<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">I don't think sale of the real estate is mandatory; the heirs of the Estate will receive the decedent's LLC interest as transferees. But they will receive the economic interest only, and are
not admitted as members (with authority to manage the LLC) without the consent of the survivor. So they'd be entitled to distributions but not have any right to manage.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">At death, the decedent automatically "dissociated" from the LLC, and the Estate can't exercise management rights except as specified in
<a href="http://app.leg.wa.gov/RCW/default.aspx?cite=25.15&full=true#25.15.131">RCW 25.15.131(5)</a>. The heirs would eventually be transferees is the LLC isn't dissolved.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">I think in order to dissolve the LLC you'll need to meet the requirements of
<a href="http://app.leg.wa.gov/RCW/default.aspx?cite=25.15&full=true#25.15.274">RCW 25.15.274</a>in some form, and on your facts as stated I'm not sure I see enough to get there. Maybe it's enough to demonstrate unfairness in having economic control completely
remain in the hands of the survivor, but it depends heavily on what the understanding was, what the property is and what it's used for, etc.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">If you dissolve, the procedures for winding up are in
<a href="http://app.leg.wa.gov/RCW/default.aspx?cite=25.15&full=true#25.15.297">RCW 25.15.297 et seq.</a> It might or might not involve sale of the real property--most likely will, if that's the principal asset and there is no good way to make equal distributions
without reducing to cash.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">If you do go for a judicial dissolution, I agree it's a standard civil action for dissolution of the LLC, not a TEDRA action. I don't think you need a partition cause of action if title is in
name of the LLC; the manager(s) in charge of the LLC can simply sell the property on the open market as part of the winding up process.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="color:#1F497D">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">SAYRE LAW OFFICES, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">1417 31st Ave South<o:p></o:p></span></p>
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</span></b><span style="color:#1F497D">We have moved our Seattle office to Mount Baker Ridge (a small commercial community just above the I-90 tunnel).
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:windowtext">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:windowtext"> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Robert West<br>
<b>Sent:</b> Tuesday, September 12, 2017 11:09 AM<br>
<b>To:</b> wsbapt@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBAPT] Partition Action Involving Estate's Interest<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif";color:windowtext">Real property is owned by an LLC, the members of which are one living person and the estate of the decedent member (my client). There is no operating agreement. The property
needs to be listed and sold. The living member refuses to cooperate in selling the property. It seems to me that a combination action to dissolve the LLC and partition the assets is the appropriate course of action. I don’t believe this is subject to TEDRA
since the living member is not an heir. I’d appreciate receiving comments or suggestions.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif";color:windowtext"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif";color:windowtext">Bob West
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif";color:windowtext"><a href="mailto:rwest@westlawoffices.com">rwest@westlawoffices.com</a><o:p></o:p></span></p>
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