Who owns a corporation if one of the principals dies?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

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 11 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption