Situation
A couple in their early fifties own a contracting company. Two adult children, only one working in the business. Roughly 80% of the family’s net worth sits inside the corporation.
The Question
If one of us dies, does the business have to be sold to settle the estate — and how do we treat both children fairly when only one of them works here?
The Planning
Corporate-owned life insurance to fund the tax liability at death, a shareholder agreement defining how shares transfer, and a personal policy sized to equalize the inheritance for the child outside the business.
The Outcome
The company can stay in the family instead of being sold under pressure, and both children receive comparable value without the business carrying the difference.
This case is a composite of common situations, with details changed; it does not describe a specific client. Actual results vary.