Would I have any responsibility to my dad's employees?

[notmyemployees]

Nevada

I'm not exactly sure if this was the best section to post this because there are multiple issues.

My dad has his own company. I have worked for him for my whole life and had planned on taking over the business. He just found out he is terminally ill and will likely pass away soon, so I have been going over his business and finances. His company has a lot of debt. So I've been thinking that it will be better for me to start over with a new company in the same field. The thing is his old employees have contracts with severance pay. My dad's company does not have the money to pay for these things, nor does he have any personal money or assets that could pay for this and I don't plan on hiring very many of these people for my new company. Given that I'm going to want to use my dad's last name for the new company (which is also my last name) I'm sort of worried they will try to come after me for their severance.

 

[Zigner]

Nevada

I'm not exactly sure if this was the best section to post this because there are multiple issues.

My dad has his own company. I have worked for him for my whole life and had planned on taking over the business. He just found out he is terminally ill and will likely pass away soon, so I have been going over his business and finances. His company has a lot of debt. So I've been thinking that it will be better for me to start over with a new company in the same field. The thing is his old employees have contracts with severance pay. My dad's company does not have the money to pay for these things, nor does he have any personal money or assets that could pay for this and I don't plan on hiring very many of these people for my new company. Given that I'm going to want to use my dad's last name for the new company (which is also my last name) I'm sort of worried they will try to come after me for their severance.

The name is irrelevant insofar as this type of liability is concerned. The structure of your dad's company is what matters. You (plural) should consult with a business attorney and an estate planning attorney to make sure these matters are handled properly.

 

[notmyemployees]

The name is irrelevant insofar as this type of liability is concerned. The structure of your dad's company is what matters. You (plural) should consult with a business attorney and an estate planning attorney to make sure these matters are handled properly.

Tbh I sort of rather not get involved in that if I don't have to. Right now I'm just legally one of my dad's employee's too. Can I just refuse to inherit from him and avoid this? There's nothing of his I want.

 

[zddoodah]

My dad has his own company.

Is this company a corporation? An LLC? A sole proprietorship? Something else?

I have worked for him for my whole life and had planned on taking over the business.

Worked for him or worked for the company? I realize that, to you, there may be no distinction, but it may be important legally.

There's no way to provide you with any meaningful feedback without answers to these questions.

 

[quincy]

Nevada

I'm not exactly sure if this was the best section to post this because there are multiple issues.

My dad has his own company. I have worked for him for my whole life and had planned on taking over the business. He just found out he is terminally ill and will likely pass away soon, so I have been going over his business and finances. His company has a lot of debt. So I've been thinking that it will be better for me to start over with a new company in the same field. The thing is his old employees have contracts with severance pay. My dad's company does not have the money to pay for these things, nor does he have any personal money or assets that could pay for this and I don't plan on hiring very many of these people for my new company. Given that I'm going to want to use my dad's last name for the new company (which is also my last name) I'm sort of worried they will try to come after me for their severance.

Tbh I sort of rather not get involved in that if I don't have to. Right now I'm just legally one of my dad's employee's too. Can I just refuse to inherit from him and avoid this? There's nothing of his I want.

First, in answer to your last question, yes. You can refuse an inheritance.

What sort of company does your dad own? Do you intend to start your own company AFTER your dad’s company has been dissolved and his assets sold to satisfy his debts?

 

[notmyemployees]

Is this company a corporation? An LLC? A sole proprietorship? Something else?




Worked for him or worked for the company? I realize that, to you, there may be no distinction, but it may be important legally.

There's no way to provide you with any meaningful feedback without answers to these questions.

I believe it's an S-Corp. I am entered in the books as an employee of the company.

 

[notmyemployees]

First, in answer to your last question, yes. You can refuse an inheritance.

What sort of company does your dad own? Do you intend to start your own company AFTER your dad’s company has been dissolved and his assets sold to satisfy his debts?

S-Corp. I really don't know the timeframe at this moment. I have no idea how long it takes to dissolve a company or all the asset stuff. I also want to take some time to grieve. So I can't say if it will be before or after.

 

[Zigner]

S-Corp. I really don't know the timeframe at this moment. I have no idea how long it takes to dissolve a company or all the asset stuff. I also want to take some time to grieve. So I can't say if it will be before or after.

Are you the named executor (representative for the estate)?

 

[notmyemployees]

Are you the named executor (representative for the estate)?

He isn't dead yet, so there's not executor or representative, but I wouldn't want to be.

 

[Zigner]

He isn't dead yet, so there's not executor or representative, but I wouldn't want to be.

Yes, I understand that, which is why I asked if you are named as such, with the implication that I was speaking about his estate planning.

In other words, does his will nominate you as the representative and/or does his trust appoint you as successor trustee?

If you are looking to simply move on and create your own company without using any of the existing company's assets or employees, then that company would have no liability with regard to your father's company based solely on you sharing a last name.

 

[quincy]

He isn't dead yet, so there's not executor or representative, but I wouldn't want to be.

If you wait to start a new company, you should not have a problem with any of your expressed concerns.

I am sorry to hear about your dad.

 

[notmyemployees]

Yes, I understand that, which is why I asked if you are named as such, with the implication that I was speaking about his estate planning.

In other words, does his will nominate you as the representative and/or does his trust appoint you as successor trustee?

If you are looking to simply move on and create your own company without using any of the existing company's assets or employees, then that company would have no liability with regard to your father's company based solely on you sharing a last name.

He doesn't have a will or trust.

Would it be a problem if I offered job to some employees at my dad's company?

 

[notmyemployees]

If you wait to start a new company, you should not have a problem with any of your expressed concerns.

I am sorry to hear about your dad.

Thank you

 

[Zigner]

He doesn't have a will or trust.

Would it be a problem if I offered job to some employees at my dad's company?

Probably not.
With that said, you need to strongly urge your father to do some estate planning as quickly as possible; otherwise, his family will be left with a HUGE mess.

 

[notmyemployees]

Probably not.
With that said, you need to strongly urge your father to do some estate planning as quickly as possible; otherwise, his family will be left with a HUGE mess.

I'm his only family. What sort of trouble would I have to deal with? Right now he refuses to talk about it because he is very depressed.