Q: Sole owner of 100% Shares of active TN Corporation died with will leaving 50% shares to employee/manager & 50% shares
to daughter for 5 years. After 5 years, daughters' 50% shares to be given to employee/manager. His will named employee as CEO & daughter as Secretary. Who owns the C Corporation? Who is entitled to the financial Corporate assets? Daughter also named as Executor but cleared money out of corporation before probate was entered.
A: For the next 5 years, employee/manager and daughter/secretary each own 50% of the company. What powers they have over the assets depends on the corporate documents.
In 5 years, the daughter's interest will terminate and the employee/manager will own 100% of the company. The daughter therefore has every incentive to distribute as much of the assets as possible.
If you're the employee/manager, you should consult with an attorney right away to try and protect your assets. You may consider a malpractice suit against the attorney who drafted the will, because such terms make it near-impossible to attain the decedent's goals.
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