But he still made virtually every mistake in the book. First, the plan was ten years old. Since then the business had doubled in size, and the insurance designed to help meet estate taxes on the passing of the business was inadequate. American business is littered with the remains of businesses killed off because of outdated plans and insufficient funds to meet estate taxes. In fact, one had no interest in or knowledge of the business.
Lack of communication can deal a death blow to any business.
Third, the owner ruled the business with an iron hand. He planned to pass the business to his sons within 10 years, but refused to give them the responsibility or control they needed now. Lack of preparation doesn't bode well for any business. None of these circumstances came to bear, however, because the owner became a widower, then remarried. His new wife was the primary heir of his estate.