By: myStockOptions Editorial Team
Key Points
1. Examine your company’s plan and each grant agreement for terms that will provide special treatment if you die. Stock plan provisions relating to death are usually more employee-friendly than those for other types of job termination, such as being laid off, getting fired, or quitting to work for another company.
2. For instance, upon your death the stock plan may continue the vesting of all or a portion of your grants instead of terminating the vesting and causing the grants to be forfeited, which is common for a regular job termination. Some stock plans even accelerate the vesting after the employee’s death.
3. After an optionholder’s death, the post-termination exercise period (PTEP) for vested stock options is very likely to be longer than it would be after job loss or resignation. The executors or administrators of your estate or trust, and any named beneficiaries for your grants, should know about the special provisions related to death in your stock awards.
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