What Happens to My Pennsylvania LLC Interest If the Operating Agreement Is Silent When I Die? | Pennsylvania Probate | FastCounsel
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What Happens to My Pennsylvania LLC Interest If the Operating Agreement Is Silent When I Die?

What happens if our LLC operating agreement doesn’t address what happens to my share when I die? - Pennsylvania

The Short Answer

If your Pennsylvania LLC operating agreement is silent, your death generally causes you to be dissociated as a member, and your estate typically receives your economic rights (the right to distributions), not automatic management or voting rights. In other words, your heirs may inherit the value of your interest, but they usually do not step into your role as an active member unless the operating agreement (or the other members) allows it.

Why You Should Speak with an Attorney

While the statutes provide the general default rules, applying them to a real LLC and a real estate plan is rarely simple. Legal outcomes often depend on:

  • Strict Deadlines: Estate administration and business decisions often move on tight timelines, and delays can trigger disputes over distributions, valuation, and control—especially if the LLC needs quick decisions after a member’s death.
  • Burden of Proof: If there’s disagreement about what the members intended (or what the operating agreement means), the estate may need strong documentation to support valuation, distribution rights, and any claimed governance role.
  • Exceptions and Deal Terms: The operating agreement may still contain transfer restrictions, buy-sell provisions, or consent requirements that change the outcome. Even when the agreement is “silent” on death, other clauses (or later amendments) can control, and a transfer in violation of restrictions can be ineffective. See, e.g., 15 Pa.C.S. § 8852(f).

Practically, this is where families get stuck: the estate may be entitled to money, but the surviving members may control timing of distributions, business direction, and access to information. A Pennsylvania probate attorney can coordinate with business counsel to protect the estate’s rights, reduce conflict, and ensure the interest is handled correctly under both the LLC statute and the decedent’s estate plan.

If you want more Pennsylvania probate context on what does (and does not) pass automatically at death, you may also find these helpful: Do joint bank accounts and jointly owned property automatically transfer at death in Pennsylvania? and Does tenants-in-common property have to go through probate in Pennsylvania?.

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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.