Legal Question in Wills and Trusts in New York
death of s corp shareholder and estate
My friend's husband died about a year ago leaving in a will everything to his wife. He was a 49% shareholder of an S corporation and the other partner owning 51% will disolve the corporation and distribute 49% in a check made out to her. Does this money have to go to the estate of her husband or can it bypass the estate as life insurance etc can. There is nothing in his estate so far as she was the beneficiary on his life insurance and IRAs.
Thank You!
2 Answers from Attorneys
Re: death of s corp shareholder and estate
Generally, the shares must go through the estate and throught probate. Possible exceptions: if shares were issues to husband and wife jointly, or if shares were held in trust.
Re: death of s corp shareholder and estate
Unless the shares were owned jointly, the shares will be part of the probate estate covered by the Will and a probate of the Will is required.
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