Death of a member - deceased member - passed away - pass away
Any instructions by the deceased are not binding on the estate and do not supersede any will that they may have left. Clubs have gotten into trouble by paying a beneficiary when the proceeds should have gone to the people named in the will. So the first step is to check with the executor of the estate, and get written permission to pay the beneficiary.
Secondly, any instructions by the deceased do not supersede the Partnership Agreement of the Club. In other words, a dying member can not choose a new member for the entire club. There should be agreement among the remaining members to accept this new member.
Thirdly, it probably is not in the best interests of the parties involved to transfer stock or club units. When a person dies, the estate receives a stepped-up basis for any stock owned, so that stock can be sold with no capital gain or loss. Therefore, the best way would be to cash the deceased's units out, and have any beneficiary joining as a new member put in the equivalent cash.
This can be accomplished with a few steps:
Enter a withdrawal for the deceased member in the accounting system as normal, *except* that when choosing the account, select Suspense.
If you do not have a Suspense account listed, you can use any account, just make sure to note the amount of the withdrawal.
Complete the withdrawal, and the Suspense account will be negative, but do not pay out any money.
The day after the withdrawal, enter a payment for the member(s) joining the club, in the amount of the withdrawal. Enter the payment into the Suspense (or whichever account was used), and the member will have ownership of the units at the stepped-up basis.
Keep in mind, this is intended to be used only for the named beneficiary(ies), who would be legally entitled to receive the value of the deceased's club position.