Tanya owns and operates a specialty garden accessories shop, Grand Illusions, as a sole

proprietor. Her storefront is located in a renovated house downtown, and she has owned the

building for the last ten years. She has one part-time employee, but otherwise she manages

the shop by herself, with some assistance from Larry and Greta. Her net income from the

business was about $55,000 last year. It has been growing at about 10% each year and she

expects that growth to continue. Her shop is located on the main floor of the building, and

she rents the second floor to a custom framing business, bringing in net rental income of

$6,000 each year.

Tanya has purchased her own $150,000 term insurance policy. The policy includes a child

life rider that covers Samantha for $20,000. Tanya does not have any disability insurance.

Suppose Tanya had a serious car accident, such that she suffers from amnesia and the

doctors expect that it will take her the better part of a year to recover from her physical

and mental injuries.

1. What if Tanya became completely incapacitated today?
2. How would it impact the business?
3. Where would the family get income and how much?
4. What would you recommend?