Webinar: When a Business Owner Dies, Sells, or Delegates Authority
May 9, 2024 3:00 pm - 4:30 pm
Headline: Business Owner Dies.
Now what? The business entity continues in perpetuity even though the owner has passed. But how do you know who is authorized to act on behalf of the business for deposit accounts and loans? Similarly, what if the owner sells and wants to transfer ownership interest? Learn how to handle these situations compliantly, collect the proper documentation, and avoid loss.
AFTER THIS WEBINAR YOU’LL BE ABLE TO:
- Understand what steps are legally permissible to take upon a business owner’s death or sale of ownership interest
- Determine who can act for the business and who can be held liable for repayment of a loan and/or guaranty after the owner dies or sells ownership interest
- Explain the situations when the business owner can delegate authority to others on the business entity’s account
- Use the proper documents to change the authorized signers on the business entity’s deposit account when the owner dies, sells, or delegates authority
WEBINAR DETAILS
What happens to loans or deposit accounts when a business owner dies or sells their ownership interest? Except for a sole proprietorship, individual business owners are separate and distinct from the legal business entity (i.e., corporation, limited liability company, partnership, trust, etc.). When the individual owner dies, the legal entity continues to exist. Likewise, if the individual sells their ownership interest, the legal entity continues to exist, although ownership has changed. In both situations, your institution must determine who is authorized to act on behalf of the business entity regarding its loans and deposit accounts.
This webinar will explain the proper procedures for when the business owner dies or sells their ownership interest, including the documents that must be reviewed and the actions your institution must take. It will also explain how to determine who is authorized to act on behalf of the business entity after the owner dies, sells, or delegates authority.
WHO SHOULD ATTEND?
This informative session will benefit both loan and deposit personnel, all loan and deposit officers, collections staff, service representatives, compliance personnel, auditors, attorneys, and managers.
TAKE-AWAY TOOLKIT
- Sample procedures for handling loans and deposit accounts after a business owner dies or sells ownership interest
- Employee training log
- Interactive quiz
- PDF of slides and speaker’s contact info for follow-up questions
Speaker: Elizabeth Fast, Spencer Fane LLP
Elizabeth Fast is a partner with Spencer Fane LLP where she specializes in the representation of financial institutions. Elizabeth is the head of the firm’s training division. She received her law degree from the University of Kansas and her undergraduate degree from Pittsburg State University. In addition, she has a Master of Business Administration degree and she is a Certified Public Accountant. Before joining Spencer Fane, she was General Counsel, Senior Vice President, and Corporate Secretary of a $9 billion bank with more than 130 branches, where she managed all legal, regulatory, and compliance functions.