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When forming or investing in an LLC, consider what will happen if someone inherits your ownership. A well-drafted operating agreement, which governs an LLC, will take into account what happens when an owner passes away. If it does not, or if the LLC has no operating agreement to begin with, you will be stuck with the default rules under Minnesota Statute 322C, which may just surprise you. Under the default rules, if you pass away, your heirs will not have the ability vote or otherwise participate in management decisions of the company. Transferees have only the right to receive distributions of the company, and some rights upon dissolution of that company. Ultimately, the default rules may not be right for you. That is why it is important that any LLC transfers like this in the operating agreement. If you wish to explore your options related to creating an LLC, or drafting an operating agreement, contact Christensen Law Office today.