Estate Settlement of Corporate Benefits
Started by TEA ENG PENG
0 points
TEA ENG PENG
Assume that Peter joins ABC Company as a managing director. The parties to the employment contract are between Peter and ABC Company. Therefore, if Peter dies, it is the legal representative of Peter’s estate that deals with ABC Company to resolve outstanding corporate benefits issues. ABC Company has no legal obligation to deal with the family members or next-of-kin of Peter. This is an important point, but is often overlooked, resulting in unnecessary and uninformed law suits.
Corporate benefits come in all shapes and sizes, and when an employee dies, these benefits could be substantial and usually form part of the deceased person’s estate. Therefore, there is a meaningful need for estate settlement to realise these outstanding benefits.
The rightful person to deal with the company should be the legal representative (administrator or executor) of the deceased. It is common that the surviving spouse goes to the company to settle the matter. Unless it is out of good will, the company has the right to decline the dealing, until the letter of administration or grant of probate is issued, giving the surviving spouse the legal right as administrator or executor of the estate.
0 points
TEA ENG PENG
Assume that Peter joins ABC Company as a managing director. The parties to the employment contract are between Peter and ABC Company. Therefore, if Peter dies, it is the legal representative of Peter’s estate that deals with ABC Company to resolve outstanding corporate benefits issues. ABC Company has no legal obligation to deal with the family members or next-of-kin of Peter. This is an important point, but is often overlooked, resulting in unnecessary and uninformed law suits.
Corporate benefits come in all shapes and sizes, and when an employee dies, these benefits could be substantial and usually form part of the deceased person’s estate. Therefore, there is a meaningful need for estate settlement to realise these outstanding benefits.
The rightful person to deal with the company should be the legal representative (administrator or executor) of the deceased. It is common that the surviving spouse goes to the company to settle the matter. Unless it is out of good will, the company has the right to decline the dealing, until the letter of administration or grant of probate is issued, giving the surviving spouse the legal right as administrator or executor of the estate.