The Necessity of Wills in Business Partnerships and LLCs

Free legal advice: If you are in partnership with someone, try to make sure he has an up-to-date will. I would not be amiss if you ask him to tell you who he has named as his executor and where he keeps his will.

If your partner dies without a will, you may well find yourself waiting for someone to qualify as his Administrator. You may also find to your dismay that some minors unable to conduct business until they become 18 are part owners of your partnership! You may also find yourself in business with people you don’t like or who are totally incompetent.

If you are in partnership or a small corporation with others, you should seek competent legal advice. You may well decide that you need a buy/sell agreement so that you can buy out a deceased person’s estate using perdetermined formulas or annually-adjusted prices. If you are issuing stock or partnership interests, you may well want each certificate or interest bound by a Shareholders’ Agreement that includes a purchase on event of death provision.

I could go on and on. You have been warned! Many disasters in business matters can be avoided or mitigated through careful planning.

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