How to Distinguish Assets Belonging to a Deceased Person’s Estate from Those Held by a Corporation in Arizona
Detailed Answer
Under Arizona law, a decedent’s estate and a corporation stand as separate legal entities. Your task is to identify which assets pass through probate and which remain under corporate ownership.
1. Recognize Separate Legal Existence
- Corporation: A corporation exists independently of shareholders or officers. It holds title to its own assets. See A.R.S. § 10-1101.
- Estate: A decedent’s estate comprises assets in the individual’s name at death. Those assets pass through probate. See A.R.S. § 14-1201.
2. Examine Title and Account Documentation
Review deeds, account statements, stock certificates and contracts. Assets titled in the corporation’s name, bearing its Employer Identification Number (EIN) or registered agent, belong to the corporation. Assets titled in the deceased’s name belong to the estate.
3. Review Corporate Records
Inspect the corporate minute book, bylaws and financial statements. Corporate assets and distributions should appear in corporate resolutions or ledgers. Absence of corporate records suggests personal ownership.
4. Inventory Estate Assets
Under Arizona probate, fiduciaries must file an inventory of all estate assets. The inventory process distinguishes assets over which the personal representative has authority. See A.R.S. § 14-3301.
5. Avoid Commingling
If the decedent mixed personal and corporate funds—such as paying personal expenses from corporate accounts—you may need corporate and probate counsel to resolve potential veil-piercing issues.
Helpful Hints
- Check all account titles: include bank, brokerage and retirement accounts.
- Look for corporate identifiers: EIN, company stamp or letterhead.
- Obtain certified copies of articles of incorporation and bylaws.
- File a personal representative bond to secure estate assets.
- Keep detailed records of asset transfers after death.
- Consult a probate attorney if you suspect asset commingling.