[WSBARP] Keep probate open for how long?

[Mark Vohr]

I don’t know if this is a winning strategy, but there are only two realistic options. Hold the probate open and have the estate received the proceeds of the sale at some future date or distribute the LLC interests to the heirs and have the heirs wait it out.

Forcing this into court would be a nightmare and probably take years anyway.  So, I would take that off the table.  Distributing to heirs would be my first choice. There is really no benefit in keeping the estate open – more work, more cost, worse tax structure.

The heirs an always hire counsel if they have to – but that decision is off in the future.  At least that is how I would handle this.

Regards,

Mark

Mark C. Vohr, J.D. CPGC
Ohana Fiduciary Corporation
A Washington Trust Company
155 NE 100th St., Suite 209
Seattle, WA  98125
Telephone:  (206) 782-1189

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Neli Espe, J.D. - Olympic Legal
Sent: Friday, January 17, 2025 9:32 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Keep probate open for how long?

Dear Listmates,

Decedent, together with a couple of partners, started a business and bought a building in which the business was located. They formed two LLCs, one for business, one for building, decedent a third owner in each. Business is still functioning and cannot be moved to a different location (location, nature of business and expensive  building improvements already made). Decedent’s share of Business LLC already paid to estate.

Value is in the building, not in the business. Operating agreement of Building LLC allows for share to be offered to the living members first, then to general public (obviously, for the second there is no realistic market). They do not have the money to buy out the deceased partner’s share and did not get life insurance. They state that refinancing of current mortgage would be ‘detrimental’. They further state that they plan to retire in 3-4 years and would sell the building and business at that point. Payout to estate, in their minds, would be at that point.

Decedent’s heirs (siblings) live out of state and would rather avoid any court clashes to force the hand of the living Building LLC members.

They are ready to wait.

I am not.

But, I have a hard time formulating a winning strategy. Any help would be appreciated.

Kind regards, Neli
___________________________________
   Neli Espe, J.D., Olympic Legal
                360.630.3635
2114 Commercial Ave., Anacortes
            olympiclegal.com<https://urldefense.proofpoint.com/v2/url?u=http-3A__olympiclegal.com_&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=K1mLMC1eFjwfeeMM-AC6zQ&m=6aZRYpk7j-pxkKOj8kqHD8sTsMfx_LWXiFE4LSi1lzLNjSDYm1kE4PU-SlrnfvKj&s=SJJk_ZF9jcKiZgUqCOP30hTDJOZuKgOT23I9FPh9zmE&e=>
      Estate Planning | Probate
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