Tim F
|
This question cannot be answered in a sentence or even a paragraph. The fact that it was an "S" corporation does not affect the result, but there are several other factors that determine the result, which would be applied in the following order:
(1) Shareholders Agreement. A well-organized corporation will often include a Shaeholders Agreement, that would set forth the results if either died, or divorced, if one (but not the other) wanted to sell, if one (but not the other) wanted to issue shares to new shareholders, and the like. Was there such an agreement?
(2) Family Trust. A well-organized estate plan often will include a so-called "Family Trust" (i.e. a revocable trust), which would be the legal owner of the corporate shares. If this was the case, then H's shares will be held or distributed in accordance with the trust. Was there a Family Trust?
(3) Will. A well-organized estate plan always includes a Last Will and Testament, which would determine who would inherit H's property upon his death. Is there a Will?
(4) Intestate Succession ("no Will"). If none of the above applied, then the owner of H's shares is determined by the laws of the state in which H was resident and the family relationships of H and W. (Note: We assume that H is a resident of one of the states in the U.S., because the corporation is described as an "S Corporation", which exists only in the U.S. and not, e.g., in the U.K.)
There are several facts that may be applicable, including whether H has children (by this or a previous marriage -- since many states will award a portion of H's property to such children) and whether H's estate is below a minimum value (in which case state law may permit the shares to be inherited without a formal court case).
If none of the foregoing applies, then the shares and H's other property will be distributed by a legal process called "Probate", which can be long and expensive.
Note to readers in the U.S.: everyone who has any assets should have an estate plan (at least a "Family Trust"), which will avoid Probate and these other types of problems.
In this case, W or the corporation must act quickly to retain a competent law firm to advise on the corporate, tax, probate and other legal issues.
Good luck. |
theoutlawmtomsik
 |
Some of that may depend on a will, if he left one leaving the shares to her than yes they go to her, but maybe he left them to his children or maybe there was no will, but usually even without a will the spouse would inhert the stocks.
She could choose to sell them, that may be specified in the will also. |
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