Death is the one eventuality for which all individuals must account. Even as limited liability companies ("LLCs") are now the most commonly used form for new business organizations, most participants therein fail to appreciate that absent express agreement set forth in the operating agreement, upon death their heirs do not succeed to any rights to participate in management even as those heirs seldom have an opportunity to liquidate the investment. This article will review the default treatment under the various LLC acts and explore a variety of approaches that may be taken in an operating agreement to alter the default treatment.
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