|
FORCED
|
PLANNED
|
|
Many
account receivables are almost impossible to collect. May lose 70 to
80% of the pre-death value if sold to a specialized financial
institution that purchases accounts receivables. |
Executor
can afford to wait for orderly collection of most accounts
receivables. If necessary, executor has time to force legal action
for collection. |
|
Inventory,
fixtures, and equipment will be sold at auction for a fraction of their
value. |
Executor
in a better position to negotiate sale of inventory, fixtures, and
equipment with potential buyers. Especially important if assets are
seasonal in nature or very specialized. |
|
Any
goodwill is totally gone - a significant loss for many small companies. |
Cooperative
venture with other businesses or individuals arranged prior to the death
may facilitate transfer or sale of some goodwill value. |
|
Immediate
push by creditors for full and immediate payment of all claims against the
business. May impair credit record of surviving family members. |
Orderly
and full payment of claims of creditors, but not until due. No injury to
creditworthiness of surviving family members. |
|
Sale
of assets may satisfy creditors and IRS, and leave nothing for the family
|
The
family will receive the income it needs, creditors will be paid, so will
IRS. |
