Partner cleared out capital account prior to a partners death

Partner cleared out capital account prior to a partners death

Real Estate Investor · Massapequa, NY · Member since 2015 · 8 posts · 1 vote
Someone is the beneficiary through inheritance of half of a deceased partner's 50% stake in an Llc. The other half went to a sibling who originally was a fifty percent partner and is also the executor of the will. In the year Prior to the passing of the partner whose will is being executed, the deceased partner's capital account, as stated in the schedule K had a large some of money which was not distributed to the partner during their lifetime prior to death. At the execution of the will the deceased capital account has only few thousand left. In the prior tax year there was several hundred thousand in the account as reported on the Sched K. The executor is only willing to disperse 25% of the property held by the LLC but has no answer when asked about the deceased capital account. What recourse does the heir have in recovering the money that was supposed to be in the capital account. The partnership agreement stipulates that the beneficiary has a right to 50% of the real estate as well as the capital account that belonged to the original 50% partner upon the passing of that prior partner. Again what is the best way to recover those funds? Thanks for any suggestions. Victim of Fraud.
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  • Brie SchmidtBusiness Member
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    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    10y

    @Kurt Isaac - I am not a lawyer... but I was the executor of an estate myself.  

    A lot is going to depend on your state laws.  I was able to pay for expenses from the deceased bank account prior to the disbursement of funds (I was also a heir) but it was small things, like a few hundred bucks....

    But if the will states you own a percentage of the business and the operating agreement allows for and heir to be named, then yes you should have access to the assets and capital accounts. 

    Is this going through probate?  Is the executor a lawyer or do they have a personal relationship with the deceased?

    http://info.legalzoom.com/can-executor-estate-doesnt-pay-heir-25561.html

  • Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
    10y

    Welcome to the BP forum community. If you intend to become an active participant in the discussions and contribute to other posters' queries, then I suggest you complete your profile.

    If your only objective is to get an answer to what is a complex legal matter involving civil, probate and perhaps corporate security laws, this ain't the place. 

    Someone's going to spend serious money to resolve this matter and then enforcement will be yet another challenge. If it were me, I'd anticipate a legal team consisting of a probate attorney, civil litigator and perhaps a court appointed receiver if the number are big enough.

  • Real Estate Investor · Massapequa, NY · Member since 2015 · 8 posts · 1 vote
    8y
    @Brie Schmidt yes the executor is the son of the deceased and brother to the heir. No he is not an an ESQ.
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