Transfer of rights to options into Trust

Asked about 5 years ago - Orlando, FL

An advisory to the company, wrote to the company in 2001 "I assigned my title, rights, and interest in stock options to my trust ...Please issue options in the name of my trust XYZ". But, the stock options would not be granted to the advisory until Aug 2006 per his agmt. The advisory ended up being terminated in Oct 2005 and never was issued the options. The trust was dissolved in Dec 2005 and the beneficiary nows says he has rights to options. Does he have any rights? In our eyes the options were never issued.

Attorney answers (1)

  1. Mark L Rosenberg

    Contributor Level 15

    Answered . This depends upon the language in the stock option. If the option is lost when the employee is terminated, then the trust has no further rights. If the stock options continue after employee termination, then the trust may have some rights.

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