Do we have the right to demand cashing in on inherited stock of a privately owned family business or have to wait for the business to sell?

Get Legal Help Today

 Secured with SHA-256 Encryption

Do we have the right to demand cashing in on inherited stock of a privately owned family business or have to wait for the business to sell?

My husband and his brother both inherited 24.5% of stock from the family’s privately owned business. His brother already owned 51%. The business has recently been appraised and is up for sale. The executors are my husband, his brother and the business’ attorney. We believe the estate is not being settled because of lack of cash in the business to pay my husband’s share, and they are holding the stock until the business is sold. Is the value of the stock based on the appraised value on the date his mother died, or based on the current appraised value or on the amount the business will sell for?

Asked on May 7, 2012 under Estate Planning, New York

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

I am so sorry for your loss.  Generally speaking, an asset of a decedent is valued as of the date of death.  But that does not mean that its value can not increase (or decrease) when it is finally sold.  The value is for taxation and probate purposes upon the initial filing of the probate petition.  Now, it is very common for an estate to be cash poor until assets are sold and distribution can not be had until creditors are paid and estate taxes are filed.  The executors really can not  pay out to beneficiaries until the aforementioned are taken care of.  The business may have debts too. I would seek help from an accountant and attorney.  Good luck.


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 with SHA-256 Encryption