I have a small, single-member LLC. Can I set its accounts up with "pay on death" designations in favor of my wife on my death?
No, as a practical matter, the LLC is not going to die. As a legal matter, the coverage provisions of state laws regarding multiple party accounts (those that establish survivorship provisions) generally make it plain that they apply only to accounts owned by individuals. Your interest in the LLC, not the LLC's assets, will be distributed according to the terms of your will subject to the terms of the LLC's operating agreement.
If you want your wife to receive the assets of the LLC on your death, you'll have to arrange for it in your will or otherwise set up a change of ownership. Check with your legal counsel for the best ways to accomplish that in your state.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
No, as a practical matter, the LLC is not going to die. As a legal matter, the coverage provisions of state laws regarding multiple party accounts (those that establish survivorship provisions) generally make it plain that they apply only to accounts owned by individuals. Your interest in the LLC, not the LLC's assets, will be distributed according to the terms of your will subject to the terms of the LLC's operating agreement.
