I am 71, an Arizona resident. I have an out-of-state LLC with a friend, Betty, with whom I have no other legal relationship. We are the only members of the LLC.
I hold a demand note payable by the LLC. Betty became incapacitated on August 1, 2012, and does not have a Living Will or other life document. She has a Power of Attorney but it is initiated only after her death.
Her expenses are considerable and the State is likely to come after her assets to recover the cost of her care.
As the note I hold is 'on demand' and I am signator on all related accounts am I lawful if I withdraw those funds from the LLC immediately?
1 Answer from Attorneys
A power of attorney is not "initiated" after the death of a person! In fact, no power of attorney has any force or effect after the principal dies. It probably became effective upon a determination that she is incapacitated. If so, you can work with her agent under the POA to get your note paid by the LLC in a proper manner.
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