What happens to an LLC share when a shareholder dies?

Question

Accepted Answer

It passes to the heirs — unless the charter lets the others say no, for the share’s value. Default Heirs inherit the share — and legal successors of a shareholder company take its share the same way. Charter Consent can be required — the charter may condition the passage on the other shareholders’ consent; thirty silent days count as yes. Refused The company buys instead — on refusal the share passes to the company, and the heirs are paid its actual value from the last accounts before the death. Interim Until the estate settles — the deceased’s rights are exercised by the person named in the will, or a manager appointed by the notary. By default a share is ordinary inheritance: it passes to the heirs of an individual shareholder and to the legal successors of a corporate one. The charter may put the passage behind the other shareholders’ consent — consent is deemed given if no shareholder refuses in writing within thirty days — and where consent is refused, the share moves to the company instead, which owes the heirs the actual value determined from the last reporting period before the death, or property of the same value with their agreement. For a solo foreign founder this is estate planning in one clause: whether the family steps into the company or is paid out of it is decided by what the charter says today, and until the inheritance is accepted the share is voted by the will’s nominee or a notary-appointed manager.

What happens to an LLC share when a shareholder dies?

Related questions

This calendar can be owned for you