Arlington, TN asked in Business Law, Estate Planning and Probate for Tennessee

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.

1 Lawyer Answer

Stefan Dunkelgrun

Answered
  • Estate Planning Lawyer
  • Grand Forks, ND

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.

1 user found this answer helpful

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.