Inheriting shares of an S-corp
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Inheriting shares of an S-corp
A family member has a 1/3 share in our s-corp. They drew up a partnership agreement leaving the 1/3 share to us. How are the shares transferred to us if we want to sell?
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Re: Inheriting shares of an S-corp
Well, there should be a shareholder agreement and a buy/sell.
Re: Inheriting shares of an S-corp
The family member's executor would transfer the shares to you (regardless of whether you want to sell them). If you sell them, you would transfer the shares to the buyer.Freeadvice wrote: ↑Mon Jun 05, 2023 9:11 am A family member has a 1/3 share in our s-corp. They drew up a partnership agreement leaving the 1/3 share to us. How are the shares transferred to us if we want to sell?
Re: Inheriting shares of an S-corp
When you say "our S Corp" do you mean that you were also a shareholder prior to this?
Made money. Lost money. Learned to stop counting.
Re: Inheriting shares of an S-corp
Some states allow TOD beneficiary designations of shares, so double check on this, it may not be a probate asset.Freeadvice wrote: ↑Mon Jun 05, 2023 9:11 am They drew up a partnership agreement leaving the 1/3 share to us.
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Re: Inheriting shares of an S-corp
Thanks BSteiner. I was hoping to not have to go through the estate. Will NY accept the partnership agreement? How is ownership of the shares transferred? Is a death certificate presented to someone?bsteiner wrote: ↑Mon Jun 05, 2023 9:34 amThe family member's executor would transfer the shares to you (regardless of whether you want to sell them). If you sell them, you would transfer the shares to the buyer.Freeadvice wrote: ↑Mon Jun 05, 2023 9:11 am A family member has a 1/3 share in our s-corp. They drew up a partnership agreement leaving the 1/3 share to us. How are the shares transferred to us if we want to sell?
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Re: Inheriting shares of an S-corp
I sure hope so! It’s in NYState.Lastrun wrote: ↑Mon Jun 05, 2023 9:56 amSome states allow TOD beneficiary designations of shares, so double check on this, it may not be a probate asset.Freeadvice wrote: ↑Mon Jun 05, 2023 9:11 am They drew up a partnership agreement leaving the 1/3 share to us.
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- Posts: 261
- Joined: Wed Nov 27, 2019 12:42 pm
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- Posts: 261
- Joined: Wed Nov 27, 2019 12:42 pm
Re: Inheriting shares of an S-corp
Does NYS allow transfer on death of shares in a business if there is a partnership agreement stating shares go to the beneficiary? How/where is this recorded?