How to Distinguish Estate Assets from Corporate Assets in Alaska
Detailed Answer
Under Alaska law, a decedent’s estate and a corporation are two separate legal entities. An estate consists of all property owned by the decedent at the time of death, while a corporation owns its own property under its corporate charter. To distinguish assets, use these key criteria:
1. Ownership Records and Titles
- Real property: Check the deed. If it names the decedent individually or “estate of [Name],” it belongs to the estate. If it names the corporation, it is corporate property.
- Bank accounts and securities: Review account registrations. Accounts titled in the decedent’s name or the personal representative’s name are estate assets. Accounts held in the corporation’s name are corporate assets.
2. Corporate Documentation
- Articles of incorporation and bylaws: These establish the corporation as a separate legal person under AS 10.06.010 et seq.
- Corporate minutes and resolutions: Look for board actions authorizing acquisition or disposal of assets. Such records demonstrate corporate ownership under AS 10.06.170 (Separate Entity).
3. Probate Filings and Inventory
- Personal representative’s inventory: Under AS 13.16.300, the executor or administrator must file a detailed list of all estate assets with the probate court. Any property not listed is presumed non-estate.
- Transfer-on-death designations and beneficiary deeds: These may pass assets outside probate, affecting what remains in the estate.
4. Intercompany Loans and Transactions
Sometimes a decedent lent money to or borrowed from a family corporation. Review promissory notes and corporate ledgers to see whether debts are owed to the estate or the corporation.
Alaska Statutes You Should Know
- AS 13.16.300 – Inventory and Appraisement of Estate Assets (link)
- AS 10.06.170 – A Corporation Is a Separate Legal Entity (link)
- AS 10.06.180 – Corporate Liability for Its Own Debts (link)
Helpful Hints
- Obtain certified copies of deeds, account statements, and title certificates.
- Search the Alaska Corporate Registry (Division of Corporations, Business and Professional Licensing) to confirm corporate existence and asset listings.
- Review board meeting minutes for evidence of corporate purchases or sales.
- Compare dates: assets acquired before death in the decedent’s name usually belong to the estate.
- Consult a probate attorney or corporate attorney if you see commingled funds or unclear records.