Detailed Answer
When a person dies, assets they owned individually become part of their estate. A separate legal entity, a corporation created by a relative, holds its own assets. Connecticut law treats these two asset pools differently.
Understanding Estate Assets
Under Connecticut’s Probate Code (Title 45a), the personal representative (executor or administrator) collects all assets titled in the decedent’s name at death. The representative must file an inventory with the probate court within three months of appointment (C.G.S. § 45a-226). Assets include bank accounts, real estate, personal property and intangible property held solely by the decedent.
Identifying Corporate Assets
Connecticut’s Business Corporation Act (Title 33) establishes a corporation as a separate legal “person.” Its assets reside in its corporate name. Common corporate assets include capital accounts, corporate bank accounts, equipment, real estate and receivables registered to the corporation. Stock or membership interests in the corporation belong to individuals, but the underlying assets remain corporate.
Key Steps to Differentiate Assets
- Examine Title and Registration. Review deeds, vehicle titles and account statements. Estate assets list the decedent’s name. Corporate assets show the corporation’s name and Employer Identification Number (EIN).
- Check Governing Documents. Articles of incorporation, bylaws and corporate minutes define corporate holdings. These documents reside in the relative’s corporate records.
- Review Beneficiary Designations. Jointly titled property with right of survivorship or payable-on-death designations may bypass probate and not form part of the estate (C.G.S. § 45a-417).
- Identify Shareholdings vs. Corporate Property. Shares of stock or units in an LLC are estate assets if the decedent owned them. However, the corporation’s bank accounts and equipment remain corporate property, not part of the estate.
- Watch for Commingling. If the decedent used a corporate account for personal expenses, consult a probate attorney. The court may require tracing transactions to allocate assets properly.
Helpful Hints
- Obtain certified copies of deeds and title documents from the town clerk’s office.
- Request a corporate status report from the Connecticut Secretary of the State (portal.ct.gov/SOTS).
- Keep corporate and personal financial records in separate files.
- Talk with the personal representative or corporate officer for clarity on asset ownership.
- Consider a forensic accountant when records overlap between personal and corporate transactions.