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.