Estate Planning
Business succession planning
Business succession challenges
This example can create a number of challenges. For example:
- your spouse may not want the ownership in the business and would prefer a cash payout to assist with repaying the mortgage and ongoing expenses
- Bill, the remaining business partner, may not want your spouse to be a 50% owner of the business
- Bill may not be able to afford the $450,000 purchase price for the 50% of the business your spouse will own on your death and now wants to sell.
So, your spouse owns 50% of a business he/she may not want and Bill would like to have the other 50% of the business, except he can’t afford to pay for it.
This can be a common problem that is often not addressed.
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