Found large sum of money belonging to my deceased father's extinct company on CA controllers site

[joeyvee]

What is the name of your state?california

I came across $302,000 from dividends paid to my father's old company. both parents are deceased, the company has been inactive for about 12-13 years, and i've been told that the only way to retrieve the funds would be to re-establish the company, and pay all the business licensing costs since shutting down. Is there any way to get the funds without having to re-establish the company?

 

[adjusterjack]

Is there any way to get the funds without having to re-establish the company?

A quick look at the state's website suggests that the answer to that question is that you will have to jump through a lot of hoops and incur expenses to get that money.

You may have to re-establish the company and re-open probate.

Read everything on the website:

Unclaimed Property (ca.gov)

There must be attorneys in CA who specialize in this sort of thing. Even if it costs you $10k or $20k to get the money, don't you think it's worth it. Who knows, there could still be continuing dividends payable to you if you inherited the property from which the dividends are generated.

 

[zddoodah]

i've been told that the only way to retrieve the funds....

Told by whom?

and pay all the business licensing costs since shutting down.

"Business licensing costs"? As in pay fees for business licenses going back to 2010?

Is there any way to get the funds without having to re-establish the company?

Almost certainly yes.

 

[Taxing Matters]

What is the name of your state?california

I came across $302,000 from dividends paid to my father's old company. both parents are deceased, the company has been inactive for about 12-13 years, and i've been told that the only way to retrieve the funds would be to re-establish the company, and pay all the business licensing costs since shutting down. Is there any way to get the funds without having to re-establish the company?

If you get the dividends, just remember that will be tax issues to consider here. The details of your father's company and to whom the money goes and why will matter. You'd want to see a tax attorney or other tax professional to be sure you get it right.

 

[LdiJ]

What is the name of your state?california

I came across $302,000 from dividends paid to my father's old company. both parents are deceased, the company has been inactive for about 12-13 years, and i've been told that the only way to retrieve the funds would be to re-establish the company, and pay all the business licensing costs since shutting down. Is there any way to get the funds without having to re-establish the company?

It usually helps, in getting a thorough answer, if you state WHO told you an alledged fact.

 

[Taxing Matters]

It usually helps, in getting a thorough answer, if you state WHO told you an alledged fact.

I've not researched it in this particular fact scenario, but California places significant restraints on what inactive or dissolved companies can do. In one tax case, a defunct corporation was contesting an IRS assessment and the court threw out the company's filings because it was inactive and as a result CA law doesn't allow companies to take that kind of action. So it would not surprise me if CA required corporate reactivation for the company to claim the money and make distributions. It's the state's way to force company owners to cough up cash the company was supposed to pay the state in taxes and fees. If the owners need the reactivation badly enough, they pay those past state debts to get reinstated. I agree that OP should verify exactly what needs to be done with a truly knowledgeable source, like an attorney or the CA secretary of state.