Indiana Code 23-18-6-2.5. Member interest designated as transfer on death property or held in joint tenancy
(1) may be designated as a transfer on death property under IC 32-17-14, with:
Terms Used In Indiana Code 23-18-6-2.5
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Joint tenancy: A form of property ownership in which two or more parties hold an undivided interest in the same property that was conveyed under the same instrument at the same time. A joint tenant can sell his (her) interest but not dispose of it by will. Upon the death of a joint tenant, his (her) undivided interest is distributed among the surviving joint tenants.
- Property: includes personal and real property. See Indiana Code 1-1-4-5
- Right of survivorship: The ownership rights that result in the acquisition of title to property by reason of having survived other co-owners.
(B) one (1) or more transfer on death beneficiaries designated; or
(2) may be titled and held in joint tenancy with right of survivorship between two (2) or more individuals.
(b) The following apply upon the death of a person who is the owner of a member interest designated as a transfer on death property:
(1) Each surviving transfer on death beneficiary has the status of an assignee of all or a fractional or percentage portion of the entire member interest owned by the deceased owner, depending on the number of surviving transfer on death beneficiaries, consistent with the transfer on death beneficiary designation, until that transfer on death beneficiary is admitted as a member of the limited liability company.
(2) The rights and obligations of each surviving transfer on death beneficiary with respect to the member interest are subject to all:
(A) transfer restrictions;
(B) redemption options; or
(C) other provisions;
that apply to the member’s interest or member interests generally under a written operating agreement.
(c) The following apply upon the death of a person who is the owner of a member interest held in joint tenancy:
(1) Each surviving joint tenant has the status of an assignee of all or a fractional or percentage portion of the entire member interest, depending on the number of surviving joint tenants, until the surviving joint tenant is admitted as a member of the limited liability company unless the surviving joint tenant was already a member under subsection (d) before the death of each other joint tenant.
(2) The rights and obligations of each surviving joint tenant with respect to the member interest are subject to all:
(A) transfer restrictions;
(B) redemption options; or
(C) other provisions;
that apply to the member interest generally under a written operating agreement.
(d) If a member interest in a limited liability company is originally and initially issued in joint tenancy form to two (2) or more individuals, each joint tenant has the voting rights of a member unless otherwise provided in the written operating agreement. If an individual member:
(1) receives and holds a member interest as the sole owner; and
(2) at a later date, makes a lawful transfer of the member interest to be held in joint tenancy between the member and one (1) or more other persons;
then, unless otherwise provided in a written operating agreement, each other person, while all joint tenants are alive, has the status of an assignee of a fractional part of the member interest until the other person is admitted as a member of the limited liability company.
As added by P.L.40-2013, SEC.10. Amended by P.L.63-2014, SEC.33.