Nashua Business Owner Questions Business Probate

We recently had a Nashua business owner voice concerns about how to avoid “business probate”.

1. There are a variety of methods of providing a smooth non-probate succession for small business owners.If there are multiple owners, then there should be buy-sell agreements embedded in the governing documents: LLC Operating Agreement; Shareholder Agreement; Partnership Agreement; These can be funded with life insurance, if necessary.
2. A member of an LLC or a stockholder in a corporation can take advantage of the Uniform Transfer on Death Act. RSA 563-C. Language can be inserted in the governing documents that states, “UPON MY DEATH, MY INTEREST SHALL BE TRANSFERRED TO MY DAUGHTER JANE”.
3. The interest in the LLC or stock can be owned directly by the Trustee of a trust – revocable or irrevocable.
4. In the case of a manager-managed LLC, the LLC interest can be held by a trustee while the individual can be the manager.

This blog is intended for informational use only. The information contained herein should not be construed as offering legal advice or a legal opinion. At Welts, White & Fontaine, P.C. our lawyers have experience with representing families, closely held businesses and trusts holding businesses. We can help you develop strategies for a successful navigation of New Hampshire’s business planning and estate planning landscape. Please contact Attorney John Polgrean if you have questions or concerns about your business and estate planning endeavors involving or matters involving commercial real estate. (603) 883-0797. jpolgrean@lawyersnh.com