The Florida Estate Planning and Probate Law Blog is focused on recent federal and state case law and planning ideas.

STEP-CHILDREN'S RIGHTS IN FLORIDA PROBATE PROCEEDINGS

One of the most common scenarios, when dealing with Florida probate matters in the second marriage situation, is that upon the death of the first spouse his or her children claim that the surviving spouse is taking their parent's assets and not communicating with them. Surviving spouse typically respond with claims that all of the marital and household assets passed to them, as the surviving spouse and the step-children are interfering. To avoid this problem the following steps should be followed:   Step One: Make a List How the Deceased Person’s Assets are Titled Start with a list of each spouse's assets and how they are titled.  That will determine the need for probate and the rights of the various parties.   Step Two: Remove All Non-Probate Assets From the List Not all assets are Florida probate assets. Many assets pass automatically to a survivor based on how the asset is titled. Common examples of “non-probate”...

LLC CASE OF INTEREST IN THE BANKRUPTCY REALM

Walro v. The Lee Group Holding Co., LLC (In re Lee), 524 B.R. 798 (Bankr. S.D. Ind. 2014) – A chapter 7 trustee sought a court determination that (1) a debtor’s voting rights in a limited liability company (LLC) were property of the bankruptcy estate, and (2) other members of the LLC violated the automatic stay by taking action to remove the debtor as a member and terminating his voting rights. The operating agreement for the limited liability company (Lee Group) provided that the debtor had a 0% economic interest, but held 51 out of 101 votes.  The agreement further provided that his voting rights would expire upon his death or withdrawal from the LLC. The debtor signed the operating agreement as a member.  The debtor was also designated as the manager of the LLC, which meant that he was in control of the company’s business and affairs.  The members were entitled to vote on certain matters, including “alienation of interest of individual members.”...