Legal Question in Wills and Trusts in California

Probate and Real Property Question

My father passed away over a year ago. Unfortunately, there was no will. To alleviate some of the stress, I hired a probate attorney. As the sole beneficiary, I inherited his possessions. These include money, stock, and a home. This is where it got tricky. My father's home is recognized as an LLC. This LLC is with my uncle. Due to bad relations, I want out. My probate attorney said he would assist. However, after paying the statuatory probate fee, I have difficulty reaching him. Additionally, I have difficulty reaching my uncle and his attorney. I cannot continue to various costs associated with the house while my uncle lives their rent free. In the operating agreement, the opposing party is liable for attorney fees. Does anyone have any suggestions on what to do?


Asked on 1/03/08, 4:49 pm

3 Answers from Attorneys

Jeb Burton The Burton Law Firm

Re: Probate and Real Property Question

This sounds like a tangled situation. To begin with, the home cannot be an LLC, it can be an asset of an LLC, but not an LLC itself. I am assuming that this was not your father's primary residence but instead an investment rental that your Uncle is living in.

Now with regards to the probate attorney. I am sorry you are having issues, but in the probate attorneys defense this type of situation is not covered in the statutory probate fee (not even remotely). In fact, this does not sound like a probate issue at all, but instead a business issue.

If your uncle is living in the house, owned by the LLC, rent free.... we have all sorts of business law issues. I would seek out a local business law attorney and have them assist you with this. If the probate attorney is not responding to your queries, hire one that has better customer relations, and realize that had you been able to contact that attorney he probably would have charged you separate from the probate fees to fix this problem anyways.

Hope this helps.

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Answered on 1/03/08, 5:57 pm

Re: Probate and Real Property Question

From your question it sounds more like a business litigation issue than a probate issue. It sounds like one relating to the operation of the LLC (Limited Liability Company) that owns the house.

You should obtain a copy of the "Operating Agreement" for the LLC and consult with an attorney. Understand that this is likely a case that is NOT going to be covered under the statutory fees for the probate attorney. You are likely going to have to pay an attorney to consult on the matter.

Let me know if you want to discuss this.

Caleb

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Answered on 1/03/08, 6:02 pm
Mitchell Roth MW Roth, Professional Law Corporation

Re: Probate and Real Property Question

You don't state whether you now own the shares in the LLC or not. From what you say your father did not own the house, but rather shares in an LLC that owned the property. Once you own the shares that your father owned you can force a dissolution of the LLC and very possibly obtain an additional judgment for the reasonable rental value of the house from your uncle since the time that he live there during the probate.

Your probate attorney may be over his head on this one, since most probate lawyers have a high volume of probates and are largely paralegal dependent. Hire a separate lawyer to handle the LLC situation. If you cannot afford to pay the lawyer the usual hourly rate, negotiate a part hourly and part contingency agreement.

If you want to, give me a call.

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Answered on 1/03/08, 6:04 pm


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