In a recent post, we reported on how Florida probate courts handle inheritances involving limited liability companies (LLCs). Specifically, we posed the question: What should an executor of a will know about an interest in a Florida Limited Liability Company?
However, Florida’s Fourth District Court of Appeal recently ruled on a case involving LLCsin a different respect. In Blechman v. Estate of Blechman, 4D13-4801, 2015 WL 71730(Fla. 4th DCA 2015), the 4th DCA helps answer the question: Contract versus a Will – which one wins?
- In August 2009, Bertram Blechman, the Decedent, and his sister formed Laura Investments, LLC.
- They executed an operating agreement, which outlined the business’s basic structure and gave each sibling a 50% ownership interest in the company.
- The operating agreement also specified that, upon death of an owner, the ownership interest he or she had would be inherited by his or her children.
- However, when Bertram died, his will specified that his interest in Laura Investments, LLC was to go to a trust, which was divided by more beneficiaries than only his children.
- One of the beneficiaries of the trust even included his girlfriend.
So, of course, Bertram’s children called up their West Palm Beach probate attorney and asked “How can my dad’s girlfriend get my inheritance?” and “Does my stepmother have a right to inherit a family business in Florida?”
- The answer may depend on the circumstances.
- In general, the executor, or personal representative, of the Florida estate should honor the decedent’s wishes with regard to inheritances and Florida estate administration.
- This usually means following a will as it is spelled out.
- However, if there is another legal document that is in conflict with the will, one must see which takes precedence.
Palm Beach probate attorneys, and estate administrators alike, have come to know thatcompeting legal documents and competing beneficiaries in Florida can cause a vast amount of unwarranted Florida probate litigation. This is the last thing you want in Florida estate administration. The best thing to do is to make sure that all of the documents controlling your interest in property and assets are not in conflict.