How to Distinguish Assets of a Deceased Person’s Estate from a Relative’s Corporate Assets in Massachusetts
Detailed Answer
When an individual dies in Massachusetts, their estate includes all assets the person owned in their sole name at death. You identify estate assets by examining title documents, deeds, account statements, insurance policies, and beneficiary designations. Under Massachusetts General Laws chapter 190 (https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleI/Chapter190), the personal representative must inventory and value these assets during probate.
By contrast, assets held by a corporation belong to the corporation as a separate legal person. Under the Massachusetts Business Corporation Act, chapter 156D section 1.40 (https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter156D/Section1.40), a corporation holds title to property, maintains its own bank accounts, and tracks assets on its books. Even if a relative formed the corporation and named the decedent as an officer or shareholder, the corporation’s assets do not automatically pass through the decedent’s estate.
To distinguish between the two, follow these steps:
- Review title and account names at death. Estate assets will reflect the decedent’s name. Corporate assets will reflect the company’s legal name.
- Check beneficiary designations. Retirement plans and life insurance pass to named beneficiaries, not to the probate estate, under Massachusetts General Laws chapter 190B section 2-4 (https://malegislature.gov/Laws/GeneralLaws/PartIII/TitleII/Chapter190B/Section2-4).
- Examine corporate records. Inspect articles of organization, bylaws, minutes, and ledgers. Confirm which assets the corporation owns. Under Massachusetts General Laws chapter 156D section 8.50 (https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter156D/Section8.50), corporations must file annual reports listing principal assets.
- Consult the probate court if ownership remains unclear. You may petition the court to clarify asset ownership and direct distribution accordingly.
Helpful Hints
- Obtain a certified copy of the death certificate before gathering documents.
- Order an estate inventory form from the Probate and Family Court.
- Request corporate documents from the Secretary of the Commonwealth’s office.
- Review joint account agreements to determine if assets passed by right of survivorship.
- Keep detailed notes when reviewing titles, deeds, and statements to track each asset’s ownership.