A statutory successor is an individual or entity that assumes the rights, responsibilities, or position of another person or entity. This occurs in situations such as corporate mergers or acquisitions, as well as when someone inherits property or assets from a deceased individual. A universal successor assumes ownership of all assets previously owned by the original owner, whereas a particular successor only assumes ownership of specific assets.
A statutory successor is an individual or organisation that assumes the assets, rights, and obligations of another individual or organisation as mandated by the law. This can occur in various scenarios, such as when a corporation is dissolved and its assets and liabilities are transferred to a statutory successor in accordance with the state’s corporation law. In the event of a property owner’s death without a will, their heirs become statutory successors and inherit the property. Additionally, when a company merges with or acquires another company, the resulting entity becomes a statutory successor and takes on the rights and responsibilities of the merged or acquired company. For instance, if a corporation is dissolved, its assets and liabilities are transferred to a statutory successor as outlined in the state’s corporation law. Consequently, the successor assumes the responsibility of settling the corporation’s debts and distributing its remaining assets to the shareholders.
A statutory successor is a person or entity who is designated by law to inherit the rights, responsibilities, and assets of another person or entity upon their death or incapacitation.
The determination of a statutory successor is typically outlined in the relevant laws or statutes of a jurisdiction. These laws may consider factors such as blood relation, marital status, or the existence of a valid will.
In some cases, the designation of a statutory successor can be challenged if there is evidence of fraud, undue influence, or if the designated successor is deemed unfit to fulfill their responsibilities. However, such challenges can be complex and require legal expertise.
If there is no statutory successor designated or if the designated successor is unable or unwilling to fulfill their role, the assets and responsibilities of the deceased or incapacitated person may be handled by the court or a designated administrator.
In some jurisdictions, individuals may have the ability to designate their own statutory successor through the creation of a valid will or other legal documents. However, the specific requirements and limitations may vary depending on the jurisdiction.
In certain circumstances, a statutory successor may be removed or replaced if they fail to fulfill their duties or if there are valid reasons for their removal. This process typically involves legal proceedings and the approval of a court.
The responsibilities of a statutory successor can vary depending on the specific circumstances and the nature of the assets or responsibilities being inherited. Generally, they are responsible for managing and distributing the assets in accordance with the law and any applicable legal documents.
In some cases, a statutory successor may have the option to refuse their inheritance. This is known as “disclaiming” the inheritance. However, the specific rules and procedures for disclaiming an inheritance can vary depending on the jurisdiction.
In certain situations, a statutory successor may be held liable for the debts or obligations of the deceased or incapacitated person to the extent of the assets they inherit. However, the laws regarding successor liability can vary, and it is advisable to seek legal advice in such cases.
Once a person has passed away or become incapacitated, it may be difficult to change the designation of a statutory successor. However, if there are valid reasons and legal grounds, it may be possible to challenge or modify the designation through legal proceedings.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/statutory-successor/
- Modern Language Association (MLA):Statutory Successor. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/statutory-successor/.
- Chicago Manual of Style (CMS):Statutory Successor. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/statutory-successor/ (accessed: May 09 2024).
- American Psychological Association (APA):Statutory Successor. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/statutory-successor/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts