How to Distinguish Assets of a Deceased Person’s Estate from Those Held by a Corporation in Washington

Detailed Answer

1. Understand the Separate Legal Entities

Washington law treats a decedent’s estate and a corporation as two distinct legal entities. When someone dies, their personal property becomes part of the probate estate. See RCW 11.04.020. A corporation is a separate “person” under state law. See RCW 23.95.025.

2. Identify Estate Assets

• Title and Ownership Documents: Assets titled solely in the decedent’s name at death generally form part of the probate estate.
• Probate Filings: The personal representative (executor) files an inventory of the estate with the clerk of the superior court. See RCW 11.40.020.
• Community vs. Separate Property: For married persons, identify community property rules under RCW 26.16.010. Separate property may pass outside probate via beneficiary designations.

3. Identify Corporate Assets

• Corporate Records: Check the company’s articles of incorporation, annual reports, bank statements and ledgers. Washington requires these records under RCW 23.95.520.
• Title in Company Name: Real estate, vehicles, licenses and bank accounts held in a corporate name generally belong to the corporation.
• Management and Control: Share certificates or membership interests determine who controls distributions and assets.

4. Practical Steps to Separate the Two

1. Gather asset lists. Request account statements and titles for both the decedent and the corporation.
2. Review deeds, titles and registration documents. Note the named owner.
3. Examine corporate minutes and ledgers. Confirm which assets the corporation acquired and when.
4. Consult the probate court record. The court’s inventory lists estate assets.
5. Seek professional help. An estate or corporate attorney can review complex real property or mixed-ownership scenarios.

Helpful Hints

• Keep an updated list of assets and titles for both personal and corporate property.
• Check beneficiary designations on retirement accounts and life insurance; these pass outside probate.
• Use a commercial real estate search to verify property owners in Washington.
• Consider a corporate dissolution or transfer if a decedent was a shareholder.
• Promptly open probate with the superior court to protect estate assets from creditors.