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    3 Replies Latest reply on Dec 15, 2008 7:23 PM by DSTREET1

    sgl member LLC - What happens if I die?

    Indigo Newbie
      I just want to make sure that my spouse can get to my bank account. He is not part of the LLC in any way. Do I need to address this in my Operating Agreement or my Will?

        • Re: sgl member LLC - What happens if I die?
          Santa Fe CPA Adventurer
          Hi there Indigo,

          In such a situation I would suggest that you make a change to the operating agreement to indicate the the authorized signatories to your bank account are yourself and your spouse (by name) and get him on the signature card with the bank, Your will would have to be probated to confirm that your spouse is legally authoized to step in as a member (manager0 of the LLC as the beneficial owner of your interest in the LLC.
          Since this involves legal issues, I recommend that you speak with your attorney as to the proper procedure for your jurisdiction. Do not confuse my comments with legal advice. Your attorney should be competent in both Estate and Business law.

          Good Luck.

          Santa Fe CPA
          • Re: sgl member LLC - What happens if I die?
            Lighthouse24 Ranger

            It depends on the state in which the LLC was formed and operates. Here (Texas), there is no "transfer on death" procedure for an LLC as there is in some states. So your ownership interest would have to be bequeathed to your husband here. The practical problem with that is who runs the company while it's in probate? The common solution most single members take is to name the husband as a non-compensated manager (a manager doesn't have to be a member, and can be dismissed by the member if circumstances ever change). That would be one way to accomplish what SantaFeCPA was outlining. Another option would be for you to create a revocable trust to serve as the LLC's single member, and name your husband as the successor trustee. I'm not an attorney, and this is definitely a matter for one -- but at least that may give you some things to consider and ask about. Best wishes.

            P.S. I like the "if" I die optimism! (LOL)
            • Re: sgl member LLC - What happens if I die?
              DSTREET1 Newbie
              Get your will updated for free! Please visit Once there, click on the " watch movie" for an overview of what they can do for you.

              Daniel Streeter
              For more info.