What do you do if your father just died and has a share in a restaurant he worked at and the partners are offering you a $1 for it?
My father just died and his partners are offering $10 for his share in the restaurant and one of them is an accountant for the restaurant and he is showing the k-2 as a major loss so he is saying the company is worthless. What should we do ?
- Raymond L.Lv 41 month ago
I would have a talk with an attorney or advice,
or talk with another restraunt owner about this.
Sounds fishy to me, how long has this restraunt been going?
- Nuff SedLv 71 month ago
Get a third-part appraisal and audit of the books, including your father's most recent few years of tax returns. You could be getting fed a line of bull, or they may actually be trying to help you get out from under massive partnership obligations. We cannot guess their actual motivations or how reputable they might be, but the right experts with the right information can certainly tell you what's what.
- Casey YLv 71 month ago
1. Do NOT trust the partners, they are acting in their own interest.
2. Hire your own accountant and probably an attorney eventually.
- JohnLv 71 month ago
Listen all the advice here and do what they have said. Do the research. Also realize that in the end it could still be the best deal you can get. Maybe it really IS going down the tubes.
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- 1 month ago
Ask for a balance sheet. That will show assets and liabilities.
Talk to an attorney.
It's impossible to say whether it's a good idea to release the ownership interest without knowing a lot more about the situation. There are many situations where you wouldn't want to get anywhere near the ownership. With an S corporation or partnership, the share of taxable income hits the individual tax return whether any cash has been distributed or not. I've seen several situations where people are anxious to pick up ownership of an entity, only to find out too late they're paying huge amounts in taxes but getting no money out of the deal. It just depends.
You really need professional assistance on this one. Otherwise you're almost certain to get rolled.
- AmyLv 71 month ago
Get an independent assessment from somebody who isn't trying to buy the share.
- Anonymous1 month ago
If you don't take it, it may require you to put cash up. Or they could be trying to take advantage of you. We have no way of knowing.
- 1 month ago
Check your father's last tax return.
Hire an independent auditor to check the books.
- babyboomer1001Lv 71 month ago
Isn't your mother aware of how the business is doing? Look at your father's last tax return. See for yourself how his business was doing. Then consult a lawyer. Accepting $1 ignorantly for handing over 1/3 share in any business would be a very foolish move. Also, the Executor is responsible to follow your father's Will, so you may or may not have any say in the matter.Source(s): Certified Paralegal, with 25+ years' experience & with Wills & Estates law experience.