How to Distinguish Estate Assets from Corporate Assets in California

1. Detailed Answer

When someone dies, you must separate property that passes through their estate from assets owned by any corporate entity a relative founded. Under California law, a decedent’s estate comprises property solely titled in their name at death, plus any interests they held in joint tenancy, community property, trusts, or designated beneficiary accounts. A corporation, by contrast, is a separate legal entity that holds title to its own assets. Mixing the two can lead to delays, litigation, and potential personal liability claims.

Follow these steps to tell them apart:

1. Examine Title and Ownership Documents
   • Review deeds, vehicle titles, and bank statements. Estate assets will show the decedent’s name alone or as part of a joint tenancy/with rights of survivorship.
   • Corporate assets appear in the name of the corporation (e.g., “Acme, Inc.”) on deeds, account statements, or registration certificates.
2. Check Corporate Records
   • Obtain the Articles of Incorporation and bylaws from the California Secretary of State’s website or the relative’s corporate records.
   • Inspect meeting minutes, resolutions, and shareholder ledgers to confirm which assets the corporation officially purchased or owns.
3. Review Financial Statements and Tax Returns
   • Corporate tax returns (Form 1120 or 1120S) list assets on the corporate balance sheet.
   • The decedent’s final personal tax return (Form 540) and the estate’s fiduciary tax return (Form 541) document estate assets.
4. Consider Transfer-on-Death and Payable-on-Death Designations
   • Accounts with beneficiary designations bypass probate and belong to the named beneficiary unless titled in the corporation’s name.
5. Understand California Statutes
   • Probate Code § 24 defines estate property and intestate succession rights. See https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PROB&sectionNum=24.
   • Probate Code § 100 sets rules for separate property. See https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PROB&sectionNum=100.
   • Corporations Code § 1500 confirms that a corporation holds property separate from its shareholders. See https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP&sectionNum=1500.

2. Helpful Hints

• Gather all titles and account statements before beginning probate.
• Request a certified copy of the death certificate.
• Consult the California Secretary of State’s online business search to verify corporate status and asset listings.
• Keep corporate and estate records in separate physical or digital folders.
• When in doubt, meet with a probate or corporate attorney to avoid mixing personal and corporate property.