Legal Question in Wills and Trusts in Maryland

In classic lawyer speak, "it depends." The LLC is owned by members who hold "units" in the LLC. Where and to whom those units go after member(s) die depends largely on the Operating Agreement as well as any buy/sell agreement. So the first thing to do is to check your Operating Agreement. If your business does not have one, I strongly encourage you to put a solid Operating Agreement in place. In some cases single owner LLCs forget to even issue membership units which can create problems when it comes to transferring at some point down the road.

Assuming that the LLC shares/units can be transferred to a surviving spouse, and that no other provision operates then, yes, they would in theory be a part of one's residuary estate and transfer under a will. However, usually small business owners want to keep a business out of probate if possible.

While I hope this general legal information helps, it is not a substitute for legal advice nor does it create any attorney/client relationship.

There are several matters involved with your question. In order to advise you, I need to learn more about the type of business, going concern, debt and equity formation, continuity agreements, by-laws and articles, intentions concerning survivorship, your family structure (i.e., children, ages, wife, etc.), tax structure, and other matters. Although your intentions may be well meaning, there may be reasons why you would not want to do as your question indicates, most notable, but not limited to, is the objective of reducing over all costs upon the estate should you pass. Contact me should you require assistance. 410 750 2567