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Business Owner Death and Complex Estates

What happens to a corporation when a shareholder dies?

Short answer

Corporate shares are estate assets. They pass through probate or trust to heirs. The corporation itself continues to operate. The executor manages the shares, including voting rights, until they are transferred. Check the shareholder agreement — it may have right of first…

What this usually means

Corporate shares are estate assets. They pass through probate or trust to heirs. The corporation itself continues to operate. The executor manages the shares, including voting rights, until they are transferred. Check the shareholder agreement — it may have right of first refusal or buyout provisions triggered by death.

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