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In the Matter of the Estate of Hausman
Citation:
921 N.E.2d 191 (N.Y. 2009)Facts
On October 16, 2000, decedent Lena Hausman’s will was executed. She divided her residuary estate into four equal shares. Decedent’s will empowered her executor, George, to create an LLC estate, which generated rental income, to the LLC for the benefit of her heirs. On October 4, 2001, George and Susan alone executed articles of organization to own, operate and manage the LLC. They drafted an operating agreement, providing that they would be the sole members of the LLC. This would have the effect of depriving the other heirs from receiving any benefit from the rental property. The articles of organization, however, were not filed with the Department of State until November 16, 2001. On November 2, 2001, decedent executed a deed transferring ownership of the property to the LLC. Upon decedent’s death in June 2002, her will was admitted to probate. A dispute arose over whether decedent’s grandchildren had rights to the real property.
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Limited Liability Company