How to Distinguish Estate Assets of a Deceased Person from Corporate Assets in West Virginia

Detailed Answer

When someone dies, you must separate the assets they owned in their personal capacity from assets held by a corporation established by a relative. West Virginia law treats these ownership categories differently. The estate’s assets pass through probate under Chapter 44 of the West Virginia Code, while corporate assets remain with the legal entity under the West Virginia Business Corporation Act in Chapter 31B or the LLC Act in Chapter 31D.

1. Identify the Legal Owner

Review deeds, titles, bank accounts, and investment statements. If the deceased person’s name appears alone or as part of a joint tenancy, the asset likely belongs to the estate. If the asset is titled in the corporation’s name or held in an Employer Identification Number (EIN), it remains corporate property.

2. Review Corporate Formation Documents

Examine the articles of incorporation, bylaws, operating agreement, and minutes. These documents specify that assets acquired in the corporation’s name belong to the corporate entity, not to individual shareholders or members.

3. Check Bank and Financial Accounts

Bank accounts in the decedent’s personal name form part of the estate. Accounts under the corporation’s EIN belong to the corporation. If funds were commingled, you may need forensic accounting to trace deposits and withdrawals.

4. Consult Probate Code Provisions

West Virginia Code § 44-1-6 defines decedent’s property subject to distribution. It includes all real and personal property in the decedent’s name at death (W. Va. Code § 44-1-6).

5. Review Corporation Statutes

The West Virginia Business Corporation Act treats the corporation as a separate legal person. Corporate property is distinct from shareholders’ personal estates. See W. Va. Code § 31B-1-101 for general definitions (W. Va. Code § 31B-1-101).

6. Address Commingled Assets

If assets or funds were used interchangeably by the decedent and the corporation, you must untangle them. Keep detailed records of contributions, distributions, and reimbursements. You may need a court order in probate to resolve disputes.

7. Seek Professional Assistance

Complex estates or intermingled corporate transactions often require help from a probate attorney or forensic accountant. They can interpret documents, trace asset origins, and file the correct petitions in probate court.

Helpful Hints

• Gather all title documents for real property to confirm the named owner.
• Obtain the corporation’s formation and amendment documents from the Secretary of State.
• Separate bank statements by account number and owner—personal vs. corporate.
• Document any transfers between the decedent and the corporation with written agreements.
• Use a forensic accountant if funds were commingled to avoid tax or fiduciary liability.
• File an inventory in probate court listing only the decedent’s personal assets.
• Maintain corporate formalities—minutes, resolutions, and separate ledgers.
• Consult a qualified West Virginia probate attorney if ownership remains unclear.