How to Distinguish a Deceased Person’s Estate Assets from Corporate Assets in Alabama
Detailed Answer
When someone dies in Alabama, assets titled in that person’s name pass through probate and become part of the decedent’s estate. Assets owned by a corporation—no matter who controls or founded it—remain corporate property. You must separate estate assets from corporate assets to ensure proper administration under Alabama law.
1. Check Title and Ownership Records
Review deeds, titles, certificates, and account records. Estate assets will be titled in the decedent’s individual name or jointly with survivorship rights. Corporate assets list the corporation’s full legal name (including suffixes such as “Inc.” or “LLC”).
2. Examine Corporate Formation Documents
Obtain the corporation’s Articles of Incorporation and annual reports filed with the Alabama Secretary of State. These filings identify the registered name, business purpose, and authorized assets of the corporation under the Alabama Business and Nonprofit Entities Code § 10A-3A-1. Corporate assets never merge into a decedent’s estate simply because a relative founded the corporation.
3. Compile a Probate Inventory
Under the Alabama Code § 43-5A-380, the personal representative must file an inventory listing all estate property. Items not listed—for example, vehicles or bank accounts owned by the corporation—remain outside probate.
4. Distinguish Control from Ownership
Control or management roles (such as being a corporate officer or director) do not equate to ownership of corporate assets. Even if the decedent served as a corporate officer, only assets titled in the decedent’s name belong to the estate. Corporate finances must stay separate under Alabama’s corporate veil principles (Title 10A).
5. Seek Professional Guidance
Misclassifying assets can delay probate and expose executors to liability. Consult a probate attorney to confirm which assets require court administration and which remain under corporate governance.
Helpful Hints
- Verify the exact legal name on each asset.
- Order certified corporate filings from the Secretary of State.
- Keep corporate and personal bank accounts strictly separate.
- Request an independent appraisal for high-value assets.
- Review the decedent’s corporate roles but focus on title documents.