"Sandy Jones" <masteroflunar[at]aol.com> wrote:

- quote -

This is a function of state law and better asked in
misc.legal.moderated.

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masteroflunar[at]aol.com (Sandy Jones) wrote:

- quote -

The parent's shares would be part of the parent's estate.
They would go to whoever stood to inherit by will (or
intestate succession, if there is no will). Intestate
succession rules are matters of state law; typically, the
surviving spouse (if any) and descendants will split the
estate according to some formula.

Note that an ill-planned or unplanned estate could have the
effect of transferring shares to an ineligible person and so
disqualifying the corporation's S-corp. election.

Some alternatives are for the parent to make a proper will
(the shares would go to the heir or heirs named in the
will), or to hold the shares in joint tenancy (the shares
would go to the surviving joint tenant), in a
transfer-on-death account (the shares would go to the named
beneficiary), or in a living trust.

--
Chris Green

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If you operate a S Corp with yourself and a parent and if
the parent dies, what happens to the shares that belong to
the parent? What if there is no will? Who will the shares go
to?

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