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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal>Can membership interests be issued in the form of a certificate with POD language that would overcome this? This of course can be approved by language in the Operating agreement permitting POD designations. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal><span style='color:black'>Nestor Gorfinkel, Attorney at Law<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'>Licensed in Washington & Florida<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'>Florida Civil-Law (International) Notary<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'><o:p> </o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;color:black'>ATTENTION - This e-mail message and any attachment to this e-mail message may contain confidential information that is legally privileged. If you are not the intended recipient, you must not review, retransmit, convert to hard copy, copy, use or disseminate this e-mail or any attachments to it. If you have received this e-mail in error, please notify us immediately by return e-mail or by telephone at the phone numbers provided herein and delete this message. Please note that if this e-mail message contains a forwarded message or is a reply to a prior message, some or all of the contents of this message or any attachments may not have been produced by the sender.<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;color:black'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='font-size:24.0pt;font-family:Webdings;color:#009900'>P</span></b><b><span style='font-size:24.0pt;color:#009900'> </span></b><b><span style='font-size:9.0pt;font-family:"Verdana",sans-serif;color:#009900'>Please consider the environment before printing this e-mail.</span></b><span style='font-family:"Century Schoolbook",serif;color:black'><o:p></o:p></span></p></div><p class=MsoNormal><o:p> </o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Bryce Dille<br><b>Sent:</b> Thursday, January 25, 2018 12:59 PM<br><b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br><b>Subject:</b> Re: [WSBAPT] Nonprobate Transfer of LLC Interest in an Operating Agreement<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal style='margin-bottom:12.0pt'>Our office had a case similar to this and although we settled on other issues crt made prelim ruling that this could not prevail over provisions in will to the contrary since agreement could not operate as will since it was not executed with will requirements. To avoid this could give 3rd party right to purchase interest at nominal amount then estate could be obligated to sell<o:p></o:p></p><div id=AppleMailSignature><p class=MsoNormal>Sent from my iPhone<o:p></o:p></p></div><div><p class=MsoNormal style='margin-bottom:12.0pt'><br>On Jan 25, 2018, at 10:50 AM, Eric Reutter <<a href="mailto:eric@tnguyenlaw.com">eric@tnguyenlaw.com</a>> wrote:<o:p></o:p></p></div><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><div><div><p class=MsoNormal>Hi all, <o:p></o:p></p><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Fairly quick question here regarding transfer of an LLC interest: <br><br><b><i>If an LLC Operating Agreement has appropriate language designating a transfer of the interest to another party, will that language effectuate a nonprobate transfer of the LLC interest? If so, what statute or case law in Washington do we rely on for the validity of this transfer?</i></b><o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>For example, assume an individual is a sole member of an LLC and had a provision similar to the following:<br><i><br>Sole Member designates<cite><span style='font-family:"Calibri",sans-serif'> the following transfer-on-death beneficiaries to acquire, upon Sole Member’s death, Sole Member’s entire Interest existing at the time of Sole Member’s death: [John Doe of Bellingham, WA]</span></cite></i><o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Although I have found supporting authority for this nonprobate transfer language in other states and in national publications, I have not found a clear Washington statute or case law that directly addresses this. For example, the Uniform Probate Code, Section 6-101 typically authorizes such a disposition, but I do not believe that Washington directly adopted Section 6-101. Also, the Florida case of Blechmen v. Estate of Blechmen clarified this nonprobate transfer issue nicely in Florida, but I have not found a similar Washington case. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>I also found a national law article ("Issues Arising upon the Death of the Sole Member of a Single-Member LLC" from the Marquette Law Review) that explained that "No express provision of the Uniform LLC Acts or typical state LLC statutes forbids the use of transfer-on-death provisions in an LLC operating agreement. Consequently, as long as the member complies with the jurisdiction’s transfer-on-death statute, no barrier seemingly exists to this technique." <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>I would be grateful for a quick citation to the statue or case law we rely on in Washington for a nonprobate transfer of an LLC interest in an Operating Agreement.<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Best regards,<o:p></o:p></p></div><div><p class=MsoNormal><br clear=all><o:p></o:p></p><div><div><div><p class=MsoNormal><b><span style='font-size:9.5pt;font-family:"ArialMT",serif;color:#008CB4'>Eric Reutter, J.D., LL.M.</span></b><span style='font-size:9.5pt;font-family:"ArialMT",serif'><br><b><span style='color:#444444'>Law Office of Theresa Nguyen, PLLC</span></b><br><span style='color:#444444'>707 S Grady Way, Suite 600 | Renton, WA 98057</span><br>Ph. <b><span style='color:#008CB4'><a href="tel:(425)%20998-7295" target="_blank"><span style='color:#1155CC'>425.998.7295</span></a></span></b> | Fax <b><span style='color:#008CB4'><a href="tel:(425)%20420-2695" target="_blank"><span style='color:#1155CC'>425.420.2695</span></a></span></b><br><b><span style='color:#008CB4'><a href="http://www.tnguyenlaw.com/" target="_blank"><span style='color:#1155CC'>www.tnguyenlaw.com</span></a></span></b> |<span style='color:#00A3D7'> <b><u>eric<a href="mailto:theresa@tnguyenlaw.com" target="_blank"><span style='color:#1155CC'>@tnguyenlaw.com</span></a> </u></b></span><br><br>This e-mail and the attachments within is covered by the Electronic Communications Privacy Act, 18 U.S.C. secs. 2510-2521, and is legally privileged and confidential. This communication may also be protected by attorney-client privilege, the work product doctrine or other applicable legal protections. If the reader of this message is not the intended recipient, the reader is hereby notified that any unauthorized review, dissemination, distribution, or copying of this message is strictly prohibited. If you are not the intended recipient, please contact the sender by reply e-mail or call the sender at <a href="tel:(425)%20998-7295" target="_blank"><span style='color:#1155CC'>425.998.7295</span></a> and destroy all copies of the original message. </span><o:p></o:p></p></div></div></div></div></div></div></blockquote><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><div><p class=MsoNormal>_______________________________________________<br>WSBAPT mailing list<br><a href="mailto:WSBAPT@lists.wsbarppt.com">WSBAPT@lists.wsbarppt.com</a><br><a href="http://mailman.fsr.com/mailman/listinfo/wsbapt">http://mailman.fsr.com/mailman/listinfo/wsbapt</a><o:p></o:p></p></div></blockquote></div></body></html>