How to Distinguish Estate Assets from Corporate Assets in Tennessee

Detailed Answer

When a Tennessee resident dies, only certain property enters probate and forms the decedent’s estate. Assets owned solely in the decedent’s name at death typically pass through probate. However, assets held in joint tenancy, payable-on-death accounts, or managed by a trust avoid probate. Corporate-held property also lies outside probate and remains with the corporation.

Identifying Estate Assets

Estate assets include real estate, bank accounts, vehicles, investments, and personal property titled solely in the decedent’s name. To qualify as estate property, the asset must satisfy these criteria:

• Title or registration lists the decedent as the sole owner.
• No beneficiary designation or joint owner exists.
• Assets not held in a trust or as nonprobate transfers like pay-on-death accounts.

See Tennessee Code Annotated §30-2-103 regarding nonprobate transfers: TCA §30-2-103.

Recognizing Corporate Assets

Property held by a corporation forms part of the corporate estate, not the decedent’s estate. Even if a relative owns or controls the corporation, its assets remain separate. Key indicators of corporate assets include:

• Asset title is in the corporation’s legal name, not an individual’s name.
• Share certificates, corporate minutes, or resolutions list ownership.
• Corporate bank accounts require corporate authorization to disburse funds.

Under Tennessee law, a corporation is a separate legal entity that owns its property independently of its shareholders. See Tennessee Code Annotated §48-18-102: TCA §48-18-102.

Practical Steps for Verification

1. Obtain certified copies of deeds, titles, and account statements.
2. Review the Tennessee Secretary of State’s website for corporate filings and annual reports.
3. Request corporate bylaws, articles of incorporation, and shareholder ledgers.
4. Examine trust documents or beneficiary designations for nonprobate transfers.

Helpful Hints

• Gather a certified copy of the decedent’s death certificate before contacting financial institutions.
• Search the county register of deeds for property records in the decedent’s name.
• Use the Tennessee Secretary of State’s Business Services Online portal to verify corporate status and filings.
• Consult a probate attorney if you find property titled in unusual ways or corporate holdings that might belong in the estate.
• Keep detailed records of all documents you collect to streamline the probate or business verification process.