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Dwayne B.
Dwayne B., Attorney
Category: Business Law
Satisfied Customers: 33404
Experience:  Practicing for over 20 years and helped a number of businesses with litigation.
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My mother has Alzheimer's. She and my dad owned a

Customer Question

My mother has Alzheimer's. She and my dad owned a corporation, now co owned by her and myself, my dad died in 2014, Can she receive any pay or money from her part of the corporation. Salary? Dividends? Etc. We live in South Carolina.
Submitted: 1 year ago.
Category: Business Law
Expert:  Dwayne B. replied 1 year ago.

Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Also, I can only answer the questions you specifically ask and based on the facts that you give so please be sure that you ask the questions you want to ask and provide all necessary facts.

What reason are they giving for not being able to receive any money?

Customer: replied 1 year ago.
Because she has alzeheimers they say she can no longer receive a salary or company dividends or any of her expenses. She has been declared incompetent. They stopped her salary last year. The corporation is a c corp.
Expert:  Dwayne B. replied 1 year ago.

Her being incompetent does not mean she can't received dividends. It may mean that someone else has to handle her money for her but it doesn't mean she can't get the money.

As to a salary, if there are receivers who are handling the corporation then they can take the position that a person who is not competent can't be employed, although the law doesn't specifically say that.

Was there an order issued with these findings? If so, can you attach a copy of it?

I will be offline until this evening but will pick up again then.

Customer: replied 1 year ago.
At this point I am being told that the company cannot pay any of her expenses, pay her a salary or dividends. Her medicines have always been charged to the company and now I'm being told that they can no longer be charged to the company. I was not told this in advance and she would have had to do without her blood pressure meds if the pharmacist didn't personally know me, as I did not give her sitter the extra money.
I would think as long as taxes are paid, this would not be an issue. I will check to find out what orders, if any, have been issued.
Expert:  Dwayne B. replied 1 year ago.

If it is a corporation then it can be improper for her to directly take money from the corp. to pay personal expenses, including medicine.

Who is telling you this?

Customer: replied 1 year ago.
Her conservator and my dad's personal representative. They did explain it better to me today that her expenses need to come from her money. I just wanted to be certain they are not giving me the wrong info. I do not get to work as often as I would like because I do keep my mom a lot. My Dad worked for over fifty years to make the corporation successful. We are in the scrap metal business and it's a tough time with the falling metal prices so I've got to keep a check on what I'm told by them. Thank you.
Expert:  Dwayne B. replied 1 year ago.

You're very welcome.

Best wishes to you and please don't forget to leave a Positive Rating so I receive credit for my work.