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Birmingham Bar Association Bulletin

LLC Act Gregory A. Brockwell, Brockwell Smith LLC What’s A Lawyer’s Life Worth? If the answer to both of these questions is “Yes,” then please keep reading. 1. Is your law firm a limited liability company (“LLC”)? 2. Might you die one day? Let’s talk about the afterlife. Th e Allman Brothers used to sing, “Can’t take it with you. Everybody knows. Can’t take it with you when you go.” Warren Buff ett tells us, “Value is what you get.” Life is fi nite. Value is uncertain. None of us will get out of here alive. But, when your time comes, what will be the value of your ownership in your law fi rm? What will your family get? If you have addressed the issue in the LLC company agreement (formerly known as the “operating agreement”), then the answer should be clear enough. But, what if your company agreement is silent on the issue? Th en the value must be determined by a new statutory procedure, which might involve protracted litigation for your estate. Alabama’s new LLC Act provides a default valuation procedure for a decedent’s interest in an LLC performing professional services. Considering that many of us (the author included) are part of such an LLC, someday our heirs will be facing the question of what value our “stock” in the LLC has. Do you want to leave valuation to the statutory procedure, or do you want to have some certainty? Th at will all depend on how comfortable you feel with the procedure the Legislature has set for us. 10 Birmingham Bar Association


Birmingham Bar Association Bulletin
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