In Re Estate Of Kurkowsk

409 A.2d 357 (1979)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Carl Kurkowski died intestate and was survived by his wife, Ellen, the administratrix and two minor sons from a prior marriage. At the time of his death, Carl was president and sole shareholder of Monroe Cycle Center, Inc. The business was valued at $43,797.88. Decedent owned a home valued at $75,000 subject to mortgage. There was life insurance of $90,000 of which $75,000 was paid to the corporation as beneficiary. After her husband's death, Ellen was elected as president of the corporation. Shortly after her election, the other two members of the board resigned. She proceeded to ignore corporate procedures and formalities and paid herself a salary in excess of $33,000 during the 20-month period that she ran the business. She used corporate assets for personal use and traded a company car on a new one that she titled in her own name without accounting to the corporation for the value of the traded in car. She paid Carl's funeral bill from the corporate assets and included the paid bill as an estate expense without having repaid the corporation. She operated at a loss and made no attempt to sell the business. When it closed its doors, corporate accounts reflected over $120,000 in assets and nine months thereafter it was placed in receivership. All the assets were sold for $22,759. The house was sold in the interim time period. In October, Carl's sons petitioned for an accounting. The court surcharged Ellen for $119,000 for having continued to operate the solely owned corporation without court approval.