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Legal Eagle
Legal Eagle, Lawyer
Category: Legal
Satisfied Customers: 4489
Experience:  Licensed to practice before state and federal court
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Tina, would you let me know what is the normal procedure for

Customer Question

HI Tina, would you let me know what is the normal procedure for employee stock options if the employee passed away while serving for the company?
JA: Because laws vary from state to state, can you tell me where the company is registered?
Customer: new york
JA: Has anything been filed or reported?
Customer: what does that mean?
JA: Anything else you want the lawyer to know before I connect you?
Customer: Can I ask more questions before you refer me to a lawyer? Or it is better to talk to a lawyer directly?
Submitted: 4 months ago.
Category: Legal
Expert:  Legal Eagle replied 4 months ago.

Hello! My name is ***** ***** I am an attorney with Just Answer. I'll be here to help today! You'll have to excuse our automated system. It just tries to sift through what you want ahead of time. Do you mind if I take a moment to review your question? By the way, the system will automatically ask for a phone call. By no means are you required to accept it.

Expert:  Legal Eagle replied 4 months ago.

So, the answer to your question is that the stock options will become a part of the employee's estate. If those options have not yet vested, then it is possible that the person who is the beneficiary or beneficiaries of the estate may not receive anything. If any of those options have vested, then the beneficiary or beneficiaries will be able to collect the proceeds of them. One thing that the executor of the estate could do is become the fiduciary over of the stocks and sell them and distribute the proceeds.

Expert:  Legal Eagle replied 4 months ago.

Follow up questions are free so did you have any additional questions? If not, were you satisfied with my service today?

Customer: replied 4 months ago.
who would be the executor of the estate? The company?
Expert:  Legal Eagle replied 4 months ago.

That's a great question. The executor would not be the company. Rather, the executor would be a) the person named in the will of the deceased or b) a person appointed by the court. If the person had a will, then they would need to go through the probate process in NY. All probate means is that the court will have to verify the validity of the will. If the employee did not have a will, then NY courts will still have to be involved in the process, but they would appoint an executor, usually a family member or trusted friend who will manage the estate proceeds properly. There's a lot of information, but if you click here, you can get started.

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