How to Distinguish Assets Belonging to a Deceased Person’s Estate From Those Held by a Corporation Established by a Relative

Detailed Answer

1. Define Estate Assets Under Wisconsin Law

In Wisconsin, a deceased person’s probate estate generally includes all assets titled in the decedent’s individual name at the time of death. The probate estate begins once someone petitions the court to open proceedings under the Wisconsin Probate Code. See Wis. Stat. § 852.01 (defining “estate”). https://docs.legis.wisconsin.gov/statutes/statutes/852/01

2. Recognize Corporate Assets as Separate Entity Property

A corporation established by a relative exists as an independent legal entity. Wisconsin’s corporate code defines a corporation’s assets as those owned in the corporate name, governed by its articles of incorporation, bylaws and corporate minutes. See Wis. Stat. § 180.0102 (definitions) and ch. 180 (corporations). https://docs.legis.wisconsin.gov/statutes/statutes/180/I/0102

3. Review Title and Registration Documents

Check property deeds, vehicle titles, bank and brokerage statements. If the decedent’s name appears alone, the asset likely belongs to the estate. If the corporate name appears, it belongs to the corporation. Corporate minutes or resolutions may show acquisitions made on behalf of the company.

4. Examine Corporate Records and Formalities

Corporate assets should appear on balance sheets and tax returns filed by the corporation. Review the articles of incorporation, bylaws and shareholder ledgers. Assets recorded there typically stay within the corporate entity.

5. Identify Exceptions: Piercing the Corporate Veil

Wisconsin courts will sometimes hold individuals liable for corporate obligations or include corporate assets in an estate if the decedent ignored corporate formalities, commingled personal and corporate funds, or used the corporation to commit fraud. See Wis. Stat. § 180.165 (piercing the corporate veil). https://docs.legis.wisconsin.gov/statutes/statutes/180/III/165

Helpful Hints

• Gather all title documents, deeds and account statements before probate begins.
• Request corporate bylaws, minutes and financial records from the corporation’s registered agent.
• Compare corporate tax returns (Form 1120) against individual filings to track asset ownership.
• Look for intermingled transactions: personal checks paid into corporate accounts or vice versa.
• Consult a probate attorney if you suspect veil piercing or commingling of assets.
• Maintain organized records to support or contest asset classification in probate court.

Distinguishing estate assets from corporate property protects your rights in Wisconsin probate. Accurate documentation and adherence to corporate formalities help ensure a clear separation.