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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Please post to list--I don't know of any authority allowing this, but I've also never looked.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">SAYRE LAW OFFICES, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">1417 31st Ave South<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Seattle WA 98144-3909<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">phone 206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">fax 206-625-9040<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Eric Reutter<br>
<b>Sent:</b> Thursday, January 25, 2018 10:48 AM<br>
<b>To:</b> wsbapt@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBAPT] Nonprobate Transfer of LLC Interest in an Operating Agreement<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Hi all,<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Fairly quick question here regarding transfer of an LLC interest:
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<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>
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<p class="MsoNormal"><o:p> </o:p></p>
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<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> 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]</cite></i><o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<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>
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<p class="MsoNormal"><o:p> </o:p></p>
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<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>
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<p class="MsoNormal"><o:p> </o:p></p>
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<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>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Best regards,<o:p></o:p></p>
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<p class="MsoNormal"><br clear="all">
<o:p></o:p></p>
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<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>
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