[WSBARP] Keep probate open for how long?

[Paul Neumiller]

Have the surviving members buy out the deceased member using a promissory note, payable in five or ten years, secured by a second deed of trust on the building.  Minimal cash outlay at this time but secures the estate's position.  Then the promissory note is distributed to the heirs and you close probate.


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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<http://olympiclegal.com/>
      Estate Planning | Probate
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