Mary, a U.S. citizen, owned 25% of the stock of Floran Corporation, an electing S corporation. At the time of her death, the Floran stock may go to all the following without affecting the S election except

Question

Quizplus · Accepted Answer

The ownership of a charitable remainder unitrust would cause the termination of the S election, as it is not a qualified S corporation shareholder. However, the ownership by a small business trust, testamentary trust, or her estate would not affect the S election as long as they are qualified S corporation shareholders.

Mary, a US