Owner dies - Child still HCE?

[Guest Tbrown]

A 33% shareholders has a daughter working in the business. He dies in 2005. As of 11/06, he (his estate) still owns the shares of the company. Is the daughter still considered an HCE?

Thanks,

Tim

[rcline46]

Who is beneficiary of the estate? If daughter is a bene, then she owns her 'beneficial interest' in the estate of the 33% stock in the estate.

[Blinky the 3-eyed Fish]

Irrespective of the estate issue, she is an HCE for 2006 because of ownership by attribution in 2005.

[Guest Tbrown]

We don't know at this time if she is a beneficiary of the estate. But one thing I left out is that this is a 6/30 year end plan. He died in April of 2005 and we are determining HCE status for the 6/30/07 plan year.

[Guest Tbrown]

I believe that she is a beneficiary of the estate. But for arguments sake, lets say she is not.