Maryland Operating Agreement Does Not Take the Place of a Will

In a recent case from the Maryland Court of Special Appeals, an LLC operating agreement provided that the members could designate a successor to their membership interests. However, the provision called into question Maryland’s testamentary and probate laws. The Court ruled that the membership interest was probate property and because the successor provision did not comply with Maryland’s statute of wills, it conveyed the LLC interest to the member’s estate, not his chosen successor.