If you own Mississippi real estate or an LLC interest, your estate plan can break down when key documents point in different directions. A will might leave “everything” to your children, but a deed might title property another way, and an operating agreement might block a transfer your family expects.
This article explains where the conflicts usually start, what Mississippi law allows for real estate and LLC interests, and how coordinated planning reduces probate delays and family tension.
Mississippi allows a transfer-on-death deed (TOD deed) that can pass real property to a named beneficiary at death, but the deed must meet statutory requirements and the chancery clerk must record it before the owner dies. During the owner’s lifetime, a TOD deed does not take away the owner’s right to sell or mortgage the property.
That flexibility helps, but you still need alignment. A deed-based plan must match the rest of the estate plan, especially when multiple heirs share property. Otherwise, families can end up with “heirs’ property” issues, shared ownership without a clean agreement on management or sale.
An LLC interest does not work like a bank account. Mississippi law treats a member’s transferable financial interest as assignable, but the assignee typically gets no management rights unless the operating agreement allows it and the other members approve or follow the agreement’s procedure.
Death adds another layer. Mississippi law allows a personal representative to exercise the deceased member’s rights for estate settlement purposes, including governance rights held at death and any operating-agreement power that lets an assignee become a member. If your operating agreement stays silent, your family can face delays, voting disputes, or a “paper ownership” interest that produces frustration instead of control.
Buy-sell provisions can prevent a fight, or start one. A well-drafted buy-sell clause can spell out who can buy the interest, how you set the price, and how you fund the purchase. A vague clause can invite pressure tactics and valuation arguments at the worst possible time. Put the business terms in writing while you can still choose them calmly.
The O’Brien Law Firm helps Mississippi clients coordinate deeds, LLC documents, and estate planning tools so the plan works in real life, not just on paper. If you own rental property, land, or a closely held company, call 662-672-7619 or reach us online to set up a planning conversation.
When a Mississippi small business starts thinking about bankruptcy, the instinct to “clean things up” can backfire. Owners often try to catch up a favorite vendor, repay a family member, or move an asset off the books before filing.
Bankruptcy law calls some of those moves avoidable transfers, the transactions a trustee (or debtor-in-possession in some cases) can unwind to treat creditors more fairly. This post explains the two big categories, that is, preferences and fraudulent transfers, and the practical danger zone to watch before you file.
A preference usually means the business paid one creditor shortly before bankruptcy in a way that puts that creditor ahead of others. The Bankruptcy Code gives a trustee the power to avoid certain pre-bankruptcy payments that meet specific requirements.
A fraudulent transfer does not require a Hollywood “fraud scheme.” Federal law allows avoidance of transfers made with actual intent to hinder, delay, or defraud creditors, and it also allows avoidance in common “constructive” situations, such as transferring value for less than reasonably equivalent value when the debtor was insolvent or became insolvent.
Timing drives these disputes. Preference law generally looks back 90 days before filing, but it can reach one year for certain transfers involving insiders (people with a close relationship or control, like owners, officers, or certain relatives). That is why last-minute repayments to business partners, shareholder loans, or family members often draw extra scrutiny.
Fraudulent transfer risk can extend beyond federal bankruptcy look-back rules because a trustee can also use applicable state law through Bankruptcy Code § 544. Mississippi’s Uniform Fraudulent Transfer Act provides creditor remedies and sets time limits for bringing those claims. As a result, a move you made well before filing can still matter, depending on the facts and the theory.
We help Mississippi individuals and business owners evaluate debt relief options, including Chapter 7, Chapter 13, and small business Chapter 11, where appropriate. If you worry about payments to insiders, asset transfers, or “catch-up” checks to vendors, we can review the timeline and discuss safer next steps before you file. Reach O’Brien Law Firm, LLC, at 662-672-7619 or contact us online.
