How to Distinguish Assets Belonging to a Deceased Person’s Estate from Corporate Assets in Missouri

Detailed Answer

When a person dies, you must separate the decedent’s personal assets from any business assets held by a corporation organized by a relative. Missouri law treats a corporation as an independent legal entity under Chapter 351 of the Missouri Revised Statutes (RSMo). In contrast, a decedent’s probate estate consists of all assets owned in the decedent’s name at death under Chapter 474, RSMo.

1. Identify the Legal Owner

• Check the title or deed. Real estate, vehicles, and bank accounts titled in the decedent’s name alone typically form part of the probate estate (RSMo §474.010).
• Examine corporate registrations. Assets titled in the corporation’s name belong to the corporation under Chapter 351, RSMo.

2. Review Corporate Records and Share Ownership

• Obtain corporate minutes, bylaws, and stock ledgers. These records show who owns shares and whether the decedent held stock personally.
• If the decedent owned shares, those shares form part of the probate estate. The corporation’s assets remain separate.

3. Check Account Registrations and Tax Filings

• Review bank statements and IRS filings. A Schedule C on the decedent’s Form 1040 indicates sole proprietorship assets, not corporate assets.
• Corporate tax returns (Form 1120 or Form 1120S) confirm a separate entity.

4. Inventory and Probate Procedures

• The personal representative must file an inventory listing all estate assets with the probate court under RSMo §474.360.
• Corporate assets do not appear on the probate inventory unless the decedent personally owned them.

5. Avoiding Veil Piercing

Missouri courts respect the corporate form unless a party proves that the corporation served as the decedent’s alter ego, assets were commingled, or corporate formalities were ignored. Veil piercing remains an equitable remedy, not a rule of law.

Helpful Hints

• Start by gathering deeds, titles, stock certificates, and account statements.
• Obtain certified copies of corporate records from the Missouri Secretary of State.
• Consult the probate court clerk’s office for local inventory requirements.
• Keep corporate and personal finances strictly separate to avoid later disputes.
• Seek legal advice if you suspect assets were improperly shifted between the decedent and the corporation.