How to Distinguish Assets in a Deceased Person’s Estate from Corporate Assets in Florida

Detailed Answer

When someone dies, their estate includes all property and assets they owned individually or jointly at death. A corporation established by a relative, however, is a separate legal entity. Its assets do not automatically become estate assets. To distinguish between the two, follow these steps under Florida law.

1. Understand Key Definitions

Estate Assets are defined in Florida Statutes section 731.201 as all property in which the decedent had an interest at death. This includes real estate titled in the decedent’s name, bank and brokerage accounts, vehicles, personal belongings, and any property held solely or as tenants in common.

Corporate Assets are described under Florida Statutes section 617.0201. A corporation is a distinct legal “person” that holds its own title to property, maintains separate bank accounts, and files its own tax returns. Corporate assets include real estate, equipment, inventory, and funds held in the corporation’s name.

2. Examine Title and Deed Documents

The name listed on a deed or title determines ownership. If the property deed names the decedent as an individual, it belongs to the estate. If the deed names the corporation, it belongs to the corporate entity. Check county property appraiser records to confirm the legal owner.

3. Review Business Records and Corporate Filings

Corporate assets appear in the company’s articles of incorporation, bylaws, meeting minutes, annual reports, and bank statements. These records should align with filings on Sunbiz.org (the Florida Division of Corporations). Personal assets appear in probate filings—such as the inventory filed by the personal representative under Florida Statutes section 733.605.

4. Compare Tax Returns and Account Registrations

Estate assets show up on personal income tax returns (Form 1040 schedules) and any estate tax return, while corporate assets appear on IRS Form 1120 (corporate income tax). Compare account registrations and taxpayer identification numbers to see which assets are tied to the estate versus the corporation.

5. Practical Steps to Separate Assets

1. Obtain certified copies of the decedent’s death certificate and letters of administration (if probate is opened).
2. Pull deed and title records from the county property appraiser’s office.
3. Search Sunbiz.org for the corporation’s filings and annual reports.
4. Request corporate bank statements and compare them to the decedent’s personal bank statements.
5. Prepare an estate inventory listing assets in the decedent’s name; exclude assets titled in the corporation’s name.

By carefully reviewing these documents, you can clearly distinguish estate assets from corporate assets. If you encounter complex ownership structures or mixed-use property, consider reaching out to a probate attorney for guidance.

Helpful Hints

• Always check the exact legal name on titles, deeds, and accounts.
• Use Sunbiz.org to confirm a corporation’s active status and officers.
• Maintain organized records of both estate and corporate documents.
• Watch for properties titled “in trust” or held in a living trust—these may bypass probate.
• Keep your personal and corporate finances strictly separate to avoid commingling assets.