QUESTION
Can a business be gifted money to operate during probate?
Asked on Mar 02nd, 2021 on Wills and Probate - California
More details to this question:
A brick-and-mortar small business with a strong community has been offered funds to pay it's expenses to keep it operating. The goal is to keep the business as a sell-able turnkey asset with it's IP intact as opposed to liquefying the tangible assets and shutting the business down.
1 ANSWER
2 Awards
It is not clear whether the plan would be to disburse funds from an unrelated person's estate or from the estate oif the business owner (or one of its owners). In either case, if the Will (1) provides for a bequest to the business and (2) states that distributions can be made immediately and if (3) the executor realizes that s/he is personally liable if there turns out to be insufficient funds to pay the estate's debts, the "gift" can be made.
Answered on Mar 03rd, 2021 at 5:25 AM
This is general information. It cannot substitute for a personal consultation with an attorney. It is not intended to be legal advice or imply an attorney-client relationship.