Life Events: Death

Stock Options After Death: Learn Before It's Too Late (Part 1)

Pamela Dennett
Unfortunately, immortality is not part of a stock option grant. So you should understand what will happen to your options upon your death and what choices you need to make now.

Stock Options After Death: Learn Before It's Too Late (Part 2)

Pamela Dennett
You want to prevent losing vested options at death. Part 1 addressed typical stock plan provisions that apply when an an optionholder dies. Part 2 discusses what happens to your stock options at your death and who can exercise them.

Getting It Right

Greg Salsbury
Investment Advisor
This article explores common mistakes that occur in beneficiary designation (not specific to stock grants).

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What happens to my stock options if I die before I exercise them?

You need to review the terms of your company's plan and your grant agreement. In most cases, the options do...

Does vesting automatically accelerate after death?

Generally not, though check your stock plan and grant agreement, as some plans may do this, or may do it only in special situations. In most instances...

What are common periods that stock plans allow for exercising stock options upon death?

Often, stock option plan documents provide a longer exercise period for death than for other terminations of employment. For example...

What are the most common periods after termination during which stock options can be exercised? Does the reason (e.g., disability, early retirement) matter?

Usually, you will have time after you leave the company to exercise your options. However, some companies...

Does the post-death exercise period begin to run on the day after my death or only when my administrator, executor, or heir has authority to exercise the options?

It begins to run on the day after your death, which is when your employment is officially terminated...

Can I name a beneficiary for my stock options, ESPPs, stock appreciation rights, or restricted stock?

You should read the terms of your stock plan and grant agreement. If the plan allows transfer upon death to beneficiaries, you should obtain the...

After my death, what happens to any company shares that I own?

Shares that you own pass to your beneficiaries as designated in your will. In the absence of a will...

If I die, what will happen to my ESPP participation and the holding period rules?

If your employment ends, most Section 423 ESPPs automatically...

NEW! What would happen to my performance share grant if I were to lose my job, retire, become disabled, or die?

When you terminate for standard reasons before the end of the performance cycle, you usually lose all rights to receive the grant, even if the goal appears very obtainable. If you have overlapping or concurrent grants that are outstanding...

Once my in-the-money options vest, are they mine forever?

No. You could lose them in any of the following ways...

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