Legal Question in Wills and Trusts in New Jersey

can we avoid probate via partnership agreement ?

Shares of a non-public company bought via group partnership. Certificate of shares is under name of a single partner, which can be changed only if owner dies. In such event, we want to use the partnership agreement to avoid this certificate from becoming part of the estate of the deceased partner (avoiding probate, etc) and establishing the new partner that will have his name as owner of the new certificate. Is this possible ? and if not which is the simplest way of implementing this goal ?.


Asked on 7/13/06, 4:13 pm

2 Answers from Attorneys
Jonathan Chester The Law Office of Jonathan S. Chester, Esq., LLC

Re: can we avoid probate via partnership agreement ?

Why is the stock in the name of an individual in the first place?...what point does that serve?

Maybe I'm missing something here, but why not just form an L.P. and have that entity own the stock in the company. The General Partner could be the individual who would control the company stock (vote proxy, etc.)...and there could be a plan of succession if the initial general partner should die. In that case, the stock would not be in the estate of the deceased partner (he wouldn't own it) and in addition, the partnership interest is a non-probate asset in any event.

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Answered on 7/13/06, 4:23 pm
Robert Davies The Davies Law Firm, P.A.

Re: can we avoid probate via partnership agreement ?

I understand your question, but you really need to have an attorney set this up for you. If you do nothing, you will have a problem when that person dies. There are several other problems that will occur.

If you would like, give me a call; I am in northern New Jersey. The telephone consultation will be free. I would be happy to help you out.

My contact information can be obtained from the links below, just click on the Attorney Profile link. Let my secretary know you found me through LawGuru.

Disclaimer: you can not rely on the advice of an attorney given over the internet. The exact facts of your situation, including facts which you have not mentioned in your question, may completely change the result for your situation.

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Answered on 7/19/06, 1:24 pm


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