How to Distinguish Assets of a Deceased Person’s Estate from Corporate Assets in South Carolina

Detailed Answer

When someone dies, their personal assets pass through probate as part of their estate. Assets held by a corporation remain under the corporation’s name and never become estate property. South Carolina law treats estates and corporations as separate legal entities.

1. Identify the Legal Owner:
• Estate assets are those owned by the decedent at death, either solely or as a tenant in common.
• Corporate assets belong to the corporation, an entity created under SC Code §33-31-101 et seq..

2. Review Title Documents and Records:
• Real property: deeds list the owner’s name. If the deed names the deceased individual, it’s estate property. If it lists a corporation, it stays with the corporation.
• Bank and brokerage accounts: look at account title. Accounts in the decedent’s name go to the estate; corporate accounts stay with the corporation.

3. Examine Corporate Records:
• Articles of incorporation and bylaws establish the corporation’s separate status.
• Shareholder ledgers, minutes, and annual reports show corporate asset holdings.
• SC Code confirms separate existence under Title 33, Chapter 31.

4. Check for Co-ownership or Commingling:
• If the decedent held corporate shares, those shares pass to beneficiaries but the underlying corporate assets stay with the corporation.
• Avoid commingling personal and corporate funds. If commingled, a court may examine records under SC Code §62-3-301 et seq. to trace ownership.

5. Appointing a Personal Representative:
• The court-appointed personal representative handles estate assets under SC Uniform Probate Code, Title 62, Chapter 3.
• They have no authority over corporate assets unless they also serve as a corporate officer or director in that capacity.

Helpful Hints

• Keep separate bank accounts and ledgers for personal and corporate finances.
• Review the deed, title, and account statements to confirm the named owner.
• Obtain certified copies of the articles of incorporation and corporate minutes.
• Look for any shareholder agreements that outline transfer rights upon death.
• Consult an attorney if ownership is unclear or if funds appear commingled.

Understanding the distinction ensures proper asset distribution and protects corporate limited liability. Always consider professional guidance when questions arise.