Who owns a corporation if one of the principals dies?

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Who owns a corporation if one of the principals dies?

A father and son formed a corporation. The son fronted 100% of the money to buy a business. When filling out online incorporation forms, no principal officer was listed. The son was listed as the registered agent, the father the incorporator.mThe business has 1000 shares but they are written as designated to either, both. The father dies suddenly. Does anyone have any claim (other children) to this corporation if it was funded by one son?

Asked on March 28, 2013 under Business Law, Indiana

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The other children may have a claim; when the owner of corporate shares dies, his or her shares are distributed as per the person's will (if there is one) or as per the rules for intestate succession (if no will). The deceased's other children may therefore stand to inherit some of his shares, as affected by the way the ownership if the shares was designated in the first place. It would be worthwhile for them to discuss the matter with a  trusts and estates attorney, to determine their rights.


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