Suppose that you are an executor of a Boca Raton estate and learn that your dad or mom had a private investment in aFlorida limited liability company… What are your rights to the LLC as executor? Can you look at the books, get an accounting, and find out where all the money is?
In a recent 4th DCA case:
- Earl Durden had controlling interest of Magic, LLC, in 2006 after he loaned Magic $65 million to fund its business.
- Magic was created to acquire and run radio stations.
- Over the course of Magic’s operations, Earl Durden died.
- His son, Michael, became the executor of his estate and assumed the interest in Magic that his father held when he died.
- McCoy v. Durden, 1D13-2113, 2014 WL 7404011 (Fla. 1st DCA 2014)
This case really begs two questions. “What are the duties of an executor of a will in Florida?” AND “What rights does an executor have in Florida regarding LLCs?”
- Palm Beach probate litigation attorneys can tell you, when it comes to administering a Florida estate, one of the first major duties of the executor is to make an inventory the assetsand determine what property is in the decedent’s estate.
- When it comes to interest in companies, which are entities all on their own, this can be tricky. Especially if there are disgruntled partners in the company who are unwilling to cooperate.
- However, an executor, or personal representative, of the estate of a decedent, has a duty and a right to maintain the business dealings of the decedent for a reasonable amount of time (See Florida Probate Code § 733.612).
- There is also a duty to account for the value of any interest in a business entity.
- Further, with specific regard to LLCs, the personal representative of a deceased member of alimited liability company may exercise ALL of the decedent’s rights in settling the estate. (SeeFlorida Statutes § 608.434).
Make sure you know your rights, and your duties, when acting as executor to you Florida estate. Whether it be in Delray Beach probate court, or in an estate administration in Aventura, you must know which rights an executor can, and should, exercise in Florida estate administration.
See http://www.pankauskilawfirm.com/ for videos and information on Wills in Florida, Florida Trust Law, Estate Planning, and Estate Administration in Florida.