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LLC Filing as S Corp, How to Designate Beneficiary

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  • LLC Filing as S Corp, How to Designate Beneficiary

    I am an LLC filing as an S Corp. My S Corp is a partner in my group's practice and there are several benefits (Accounts Receivable, a Loss Reserve account, Life Insurance) that I would want to pass on to my estate should I die. I know that my LLC filing as an S Corp is a pass thru entity, but should I die I would ideally like the above mentioned benefits to pass thru directly to my estate and avoid probate. I setup my LLC and S Corp status year ago, but just don't recall setting up a beneficiary at the time. Is there a way to designate this?

  • #2
    Almost certainly the partnership agreement would have a provision that would require liquidation of your ownership interest in the event of your demise. The agreement should stipulate what share of AR or other items you would receive and when. Those terms of the agreement would need to be considered with regard to your questions.

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    • #3
      Is the question of the beneficiary of the partnership to which the scorp/LLC belongs (medical group) or the beneficiary of the LLC itself?

      If the former..then what jaco said....it's in the partnership agreement.

      If the latter, it depends on how the LLC is setup on ownership transfers in the articles of incorpoincorporation along with the owner itself.

      I presume you did NOT setup any specifics in the LLC by the way of the original question, so you probably have yourself is the owner of the LLC

      Easiest blanket advice is living trust specifically calling out the LLC scorp and what to do with it. Maybe easier in some states and really needs a good estate planner/lawyer at that point .

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