Director/shareholder passed away.
Discussion
A small family business, My dad (director 97% shareholder) brother sister and myself all directors and with 1% share each.
On tuesday my dad passed away from a long term illness. we were lead to believe all was in place and the accountant was in the process of getting everything in place to hand over all the shares to us. dad was getting rapidly worse over the last few weeks so i started pushing for everything to be finalised ASAP.
This hasnt happened intime and therefore its all up in arms at the moment. The bank seem to be ok with it all at the moment but i have heard stories of them freezing the bank account. is this likely to happen?
Obviously we want to continue trading and are extremely busy at the moment so dont want to let customers/suppliers down but something says it wont go so smooth as i hope.
anything else i will need to do?
On tuesday my dad passed away from a long term illness. we were lead to believe all was in place and the accountant was in the process of getting everything in place to hand over all the shares to us. dad was getting rapidly worse over the last few weeks so i started pushing for everything to be finalised ASAP.
This hasnt happened intime and therefore its all up in arms at the moment. The bank seem to be ok with it all at the moment but i have heard stories of them freezing the bank account. is this likely to happen?
Obviously we want to continue trading and are extremely busy at the moment so dont want to let customers/suppliers down but something says it wont go so smooth as i hope.
anything else i will need to do?
My condolences for your loss.
The shares are part of your father's estate and so the executor will distribute them accordingly. Did your father leave a will and plan to leave you the shares equally? If it will go to his wife then somehow they need to be sold or transferred to you all. I think the first step is to review the company's articles of incorporation because these should detail the steps.
The shares are part of your father's estate and so the executor will distribute them accordingly. Did your father leave a will and plan to leave you the shares equally? If it will go to his wife then somehow they need to be sold or transferred to you all. I think the first step is to review the company's articles of incorporation because these should detail the steps.
Edited by essayer on Friday 18th July 11:07
Edited by essayer on Friday 18th July 11:09
many thanks firstly. its dam tough going. Me and dad have sat opposite in the office for 12 years now. the office is rather empty now. 
Anyway,
See thats the part i forgot to mention. The executor is my step mum, BUT when Mum & Dad divorced part of that was that she didnt get a share of the company and its all passed directly to us. TBH she doesnt seem interested and just wants it all handed over to us.
I'll have to have a nose through the paperwork here and see what i can find.
Anyway,
See thats the part i forgot to mention. The executor is my step mum, BUT when Mum & Dad divorced part of that was that she didnt get a share of the company and its all passed directly to us. TBH she doesnt seem interested and just wants it all handed over to us.
I'll have to have a nose through the paperwork here and see what i can find.
It sounds like you need to get a copy of the divorce settlement, his will and the company articles of incorporation. I've no idea where you get the last one from if it's a company that's been around for a long time.
Then you can see what happens to the shares and how you can take proper ownership of them. I have no idea what arrangements are typically made in divorce settlements but is it possible the shares were written into a trust of some sort?
Perhaps the firm who handled the divorce could tell you or the executor more information.
Then you can see what happens to the shares and how you can take proper ownership of them. I have no idea what arrangements are typically made in divorce settlements but is it possible the shares were written into a trust of some sort?
Perhaps the firm who handled the divorce could tell you or the executor more information.
essayer said:
It sounds like you need to get a copy of the divorce settlement, his will and the company articles of incorporation. I've no idea where you get the last one from if it's a company that's been around for a long time.
Then you can see what happens to the shares and how you can take proper ownership of them. I have no idea what arrangements are typically made in divorce settlements but is it possible the shares were written into a trust of some sort?
Perhaps the firm who handled the divorce could tell you or the executor more information.
Mum is currently looking for the divorce papers. The company was sole trader up till 2003 so hopefully all the paperwork is still here. Then you can see what happens to the shares and how you can take proper ownership of them. I have no idea what arrangements are typically made in divorce settlements but is it possible the shares were written into a trust of some sort?
Perhaps the firm who handled the divorce could tell you or the executor more information.
If she cant find them as she has moved several times and downsized i will get her to contact her solicitor to see where we go.
Will update if/when anything comes to light.
Steve57 said:
See thats the part i forgot to mention. The executor is my step mum, BUT when Mum & Dad divorced part of that was that she didnt get a share of the company and its all passed directly to us. TBH she doesnt seem interested and just wants it all handed over to us.
Then if she is the Executor I don't see a problem. The Executor's job is to execute the Will, and if she's not contesting it, fine. Odd that the role wasn't reassigned upon divorce though, eg to yourself.There may be some useful info here: https://www.gov.uk/after-a-death/overview
Simpo Two said:
Steve57 said:
See thats the part i forgot to mention. The executor is my step mum, BUT when Mum & Dad divorced part of that was that she didnt get a share of the company and its all passed directly to us. TBH she doesnt seem interested and just wants it all handed over to us.
Then if she is the Executor I don't see a problem. The Executor's job is to execute the Will, and if she's not contesting it, fine. Odd that the role wasn't reassigned upon divorce though, eg to yourself.There may be some useful info here: https://www.gov.uk/after-a-death/overview
Thats where it is getting interesting, as yet (i know only a week ago) it seems dad didnt make a will. 
why i dont know, if he did it isnt being disclosed. The estate will be in the region of £1million which includes the house and his cars.
Think it will be wise to get some legal help very soon.
why i dont know, if he did it isnt being disclosed. The estate will be in the region of £1million which includes the house and his cars. Think it will be wise to get some legal help very soon.
ewenm said:
If step-mum and dad are married then, without a will, won't the whole estate just go to her?
I do hope not the plus side is we get the business, as long as we make it work (as it has done for some years). Dad has a collection of cars, two early (1920) Invicta's,two sunbeam Talbots and a Jag XK140. personally i would like to keep them as they are all increasing in value, from a few hints she wants to sell them all.
) If your Dad left no will, his estate passes directly to his next of kin, in strict order of precedence. In this case his estate will pass to his wife. It doesn't matter what the divorce settlement says - if the shares were owned by your father, and he failed to make a will, then he has simply not abided by his divorce settlement. Doesn't affect the fact that the shares go to his wife.
Your mother may be able to sue his estate for breach of the divorce settlement, but be prepared for one hell of a big bill.
Of course, your step mother may choose to pass the shares on to you children if she agrees it was your fathers wish that you were to receive them.
For the rest of us - especially anyone who hasn't got around to making a will yet - there is a lesson: this is exactly the kind of mess you leave around if you fail to make a will.
Your mother may be able to sue his estate for breach of the divorce settlement, but be prepared for one hell of a big bill.
Of course, your step mother may choose to pass the shares on to you children if she agrees it was your fathers wish that you were to receive them.
For the rest of us - especially anyone who hasn't got around to making a will yet - there is a lesson: this is exactly the kind of mess you leave around if you fail to make a will.
Sid's Dad said:
If your Dad left no will, his estate passes directly to his next of kin, in strict order of precedence. In this case his estate will pass to his wife. It doesn't matter what the divorce settlement says - if the shares were owned by your father, and he failed to make a will, then he has simply not abided by his divorce settlement. Doesn't affect the fact that the shares go to his wife.
Your mother may be able to sue his estate for breach of the divorce settlement, but be prepared for one hell of a big bill.
Of course, your step mother may choose to pass the shares on to you children if she agrees it was your fathers wish that you were to receive them.
For the rest of us - especially anyone who hasn't got around to making a will yet - there is a lesson: this is exactly the kind of mess you leave around if you fail to make a will.
It would seem the case, step mother has said its ours and will if needed sign it over so hopefully that is covered. Your mother may be able to sue his estate for breach of the divorce settlement, but be prepared for one hell of a big bill.
Of course, your step mother may choose to pass the shares on to you children if she agrees it was your fathers wish that you were to receive them.
For the rest of us - especially anyone who hasn't got around to making a will yet - there is a lesson: this is exactly the kind of mess you leave around if you fail to make a will.
Someone mentioned to me intestancy, and ill need to look into this. But dont want to rock the boat too much before the business is sorted.
If im honest i cant believe he didnt make a will as he has been Ill for 3 years now. It was mentioned at one point and his reply was everything is in place. Not sure what/where or even if step mum is withholding it.
Steve, firstly sorry to hear about your loss, hope you and Lin and the rest of the family are doing ok.
Doesn't there need to be a will for there to be an executor?
Might be worth giving Chris a call, he will obviously know the legal aspect of this, and may advise what your next steps should be? If you need his number give me a cal.
Doesn't there need to be a will for there to be an executor?
Might be worth giving Chris a call, he will obviously know the legal aspect of this, and may advise what your next steps should be? If you need his number give me a cal.
Gassing Station | Business | Top of Page | What's New | My Stuff