We have a member that has moved and she has not been good at
all about letting us know how to contact her. We would like
to get her off of the books before the end of the year so we
don't have to deal with her K-1 for 2005.

Is it a reasonable thing to cash her out before the end of
the year and send the check when we can get her contact
info. I'm sure we'll get it but probably not before the end
of the year.

Any thoughts on this?

Sure. You can do this if, and only if, your partnership agreement allows you to do it. However, if your partnership agreement follows the NAIC model agreement for valuing a withdrawal, you will be using your next valuation statement which may not be this year.

 

In any event, if you do decide to withdraw her, I would write the check and send it to her last known address, certified/return receipt requested. There may also be a method to request information on a forwarding address. This way you can document that you tried to contact her (or were successful). I would not just withdraw her and make no effort to get her money to her.

 

Ira Smilovitz