Close Corporation - Death of a shareholder

                                                                            (Business Succession Link)

1. Readjustments must be made - following are the alternatives:
Survivors		Heirs
(1) May accept heirs in business:		(1) Enter business with survivors:
a) Inexperienced		a) Rarely desirable.
b) If they don't actually  work, then		b) If so, then what salary can
is there a history of dividends?		they command?
c) Always a risk of heirs selling		c) Often no dividend history.
out to someone else at any time.
(2) May have to accept a stranger who		(2) Sell stock to outsiders:
buys heir's stock.		a) Stock in a close corporation is not
		usually saleable.
(3) May sell to heirs:		(3) May buy out the whole business
a) Rarely practicable.		a) Rarely feasible.
b) If so, what is price?		b) If so, what price?
c) Where to find the money?		c) Where does the cash come from?
		d) Usually buffer fund needed.
(4) May buy out heirs:		(4) Sell stock to survivors:
a) Usually best, but		a) Usually best but where does
b) What is the price?		does he get the cash?
c) Where do they get the cash?
d) Will they sell to him?