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

When someone dies, their personal property and real estate form part of their estate. A corporation, by contrast, holds its own assets under its corporate name. Identifying which assets belong to the decedent’s estate and which belong to a relative’s corporation helps you administer probate correctly and avoid legal disputes.

Detailed Answer

Under Pennsylvania law, a decedent’s estate consists of all assets the person owned in their individual name at death. The estate administrator (personal representative) gathers those assets, pays debts and distributes the remainder to heirs or beneficiaries under 20 Pa.C.S. § 3101 et seq. (see 20 Pa.C.S. § 3101).

By law, a corporation is a separate legal entity from its shareholders, directors and officers. It holds title to its property in its corporate name. Pennsylvania’s Business Corporation Law confirms that a corporation’s assets belong to the company alone (see 15 Pa.C.S. § 1301).

Follow these steps to distinguish estate assets from corporate assets:

1. Review title and ownership documents. Check deeds, vehicle titles, bank accounts and investment statements. An asset titled in the decedent’s name belongs to the estate. If a corporate entity name appears, it belongs to that corporation.
2. Examine corporate records. Request copies of the articles of incorporation, bylaws, share ledgers and meeting minutes. These documents show what the corporation owns and how it acquires assets.
3. Scrutinize account statements. Compare bank and brokerage statements. Corporate records should show a separate tax ID (EIN) and financial statements. Estate accounts often bear the personal representative’s temporary tax ID under 20 Pa.C.S. § 3121.
4. Check transfer history. Look for deeds or titles transferred to the corporation before the decedent’s death. Transfers to unrelated third parties or below-market transactions may trigger additional scrutiny.
5. Seek professional guidance. A probate attorney can verify whether assets held in corporate form require valuation in the estate or remain outside probate.

Helpful Hints

• Keep a detailed inventory of all suspected estate assets, including serial numbers and titles.
• Gather corporate formation documents from the Pennsylvania Department of State FileView portal.
• Compare federal tax filings: estate tax returns (Form 706) vs. corporate returns (Form 1120).
• Use a forensic accountant if the asset history seems complex or intertwined.
• Confirm valuations with appraisals for real estate, business interests or unique property.
• Maintain clear communication among heirs, beneficiaries and corporate officers to avoid misunderstandings.