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Survivors Benefits?!

Discussion in 'Uncategorized Threads' started by spitter, Jun 13, 2007.

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  1. spitter

    spitter Well-Known Member TS Supporters

    Joined:
    Jan 29, 1998
    Messages:
    4,364
    Location:
    Prairie State
    I'm wrestling with a concept that I'm trying to sell to my Club Board - offering a "survivor's benefit" and/or a "conversion privilege" to the survivors of a club member who passes away while in good standing.

    Anyone out there dealt with this idea or any club implement a concept such as this? How'd you do it? What parameters/limitations did you establish?

    Thanks in advance for your thoughts and feedback on this idea.

    Jay Spitz
     
  2. School Teacher

    School Teacher Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    2,053
    Location:
    Louisville, KY
    Jay:

    The issue of survivor’s benefits, IMO, will be determined by the club’s articles of incorporation and by the definition of who is a member. Also to be considered is whether the club is for profit or non profit. For profit clubs usually have shares of stock or some equivalent evidence of membership while non profit clubs typically are “non stock” organizations. For profit clubs may allow transfer of membership subject to approval of current members or other criteria. Non profit clubs do not accrue equity in a membership and may not be able to transfer membership by state law. I am not a lawyer but this is my general understanding.

    The clubs to which I have belonged were non stock and non profit. Membership was by family meaning that both husband and wife are members. If one passes away, the other is still a member. When both are gone, the membership ends. Being a non profit corporation, no equity is built up in the membership so, when both husband and wife are demised, the membership ends and no assets accrue to the estate.

    It the club has openings for new members; the point may be moot as the club can simply sign up the survivor as a new member.

    I would read the club’s articles of incorporation and bylaws very carefully. If a majority of members desire to have some mechanism for passing on membership, not already contained in the articles of incorporation or bylaws, it will need to be in accordance with the laws of the state of incorporation and be approved by a majority of members.

    Ed Ward
     
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