How to Distinguish a Deceased Person’s Estate Assets from Those Held by a Corporation in Maryland
When a loved one dies, you must separate their personal estate from assets owned by any corporation they helped form. Maryland law treats each entity as a separate legal person. This FAQ explains how to identify estate assets versus corporate property.
Detailed Answer
1. Understand Separate Legal Entities
Maryland law classifies a corporation as a distinct legal entity apart from its shareholders. See Md. Code, Corps. & Ass’ns §1-101. The corporation owns its assets, not the decedent personally.
2. Review Title and Account Records
Check deeds, titles, stock certificates and bank statements. Personal assets appear under the decedent’s name or jointly held interests. Corporate assets carry the company’s name. The personal representative must file an inventory under Md. Code, Est. & Trusts §7-101 and §7-102.
3. Examine Corporate Records
Review the corporation’s minute book, bylaws, articles of incorporation and stock ledger. These records show ownership and asset holdings. Maryland law requires corporations to keep records of all financial transactions. See Md. Code, Corps. & Ass’ns Art..
4. Search Public Records
Use Maryland Real Property Databases to confirm title. Corporate property transfers must record at the county land records office. Estate property appears in the decedent’s name.
5. Identify Commingling and Veil-Piercing Risks
If the decedent mixed personal funds with corporate accounts, creditors may seek to pierce the corporate veil. Courts assess control, payment of corporate debts and corporate formalities. Keep clear separation to protect both estate and corporate assets.
Helpful Hints
- Collect all deeds, titles and account statements for review.
- Obtain certified copies of the corporate articles of incorporation.
- Secure an inventory of estate assets under Md. Code, Est. & Trusts §7-101.
- Confirm corporate assets via the state’s business entity search.
- Consult a probate attorney if you suspect commingling or wrongful transfers.