IraS1@aol.com wrote:
> In a message dated 6/24/2006 5:47:11 P.M. Eastern Standard Time,
> rbw111@bivio.com writes:
> We have
>   a unqiue investment club --strictly very close
> friends. In our Partnership
>   agreeement we stated that if a
> member pasted away their investment would be
>   transferred
> equally among the other members. Of course when we
>   wrote
> that rule we never dreamed one of us would die before
>   we
> disbanded. Well it happen.  How do I handle
>   this
> transaction?
>
>
> Regardless of what your Partnership Agreement states, check with a local
> attorney before doing anything. I suspect that in most states, this clause is
> unenforceable and will be superceded by the terms of the decedent's will. In
> other words, the decedent's share of the club will have to pass to his estate or
> else the estate's beneficiaries (the estate's executor) could sue to recover the
> assets.
>  
> Ira Smilovitz

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We don't have to worry about being sued by his estate his
wife is in the same club and wants to tranfers his
investments to each member.

I guess I could withdraw him from membership and cash him
out then she can give the money back to be invested.  It
just creates taxes for her and the club.

Just because his wife is a member of the club doesn't remove the risk. You are assuming that his wife is the sole beneficiary (or at least the beneficiary who will be inheriting the club investment). Unless you have seen the will and know that you've seen the version which is binding on the estate, you can't presume that the wife's interests are the same as the decedent's.

 

Ira Smilovitz