Life Events
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Life Events - Death

Life Events › Death


Disability And Death: What Happens To Stock Options, Restricted Stock/RSUs, And ESPP Participation? This is premium content

Disability and death are subjects that few people like to think about, but they are important topics for employees who have stock compensation. Every stock plan has provisions on the treatment of equity compensation in the case of these life events, so you and your family members should understand those plan features just in case they come into play. This article presents the common ways in which stock plans treat grants upon the disability or death of employees.

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

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) This is premium content

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


What would happen to my unvested restricted stock or RSUs if I were to die or become disabled before the vesting date? This is premium content

The treatment of unvested restricted stock and RSUs upon death or disability depends on the terms of your stock plan and the specifics of your grant agreement. In its 2019 Stock Plan Design Survey, the National Association of Stock Plan Professionals observed the following related practices among the companies in its survey group...

What would happen to my vested stock options if I were to die before exercising them?

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

Would my death automatically accelerate the vesting of my stock grants?

The treatment varies by company and stock plan. You should check your...
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What are common periods that stock plans allow for exercising stock options upon death? This is premium content

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, retirement) matter?

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

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

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? This is premium content

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

UPDATES! What would happen to my performance share grant if I were to lose my job, retire, become disabled, or die? This is premium content

When you have a performance award and leave the company for a standard reason (e.g. going to work for another company, being laid off) before the end of the performance cycle, you usually lose all rights to receive the grant, even if...

Once my in-the-money options vest, are they mine forever? This is premium content

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