PROTECT YOUR BUSINESS
BUY / SELL INSURANCE
When a partner in a business dies or becomes disabled, the disposition of his or her business interest often creates many problems for his heirs as well as the remaining partners. There are many important issues that must be dealt with. Who will purchase the shares of the deceased? What is a fair price for his shares in the business? Where will the funds come from? These problems are easily resolved if a buy-sell agreement has been established.
A buy-sell agreement provides that:
- Someone (e.g., the business entity, key employee, or the surviving partners) will purchase the deceased owner's shares at an agreed-upon price. The deceased owner's estate is obligated to sell the shares at that price.
- Where will the funds come from? With no money to lay out and with very minimal risk, Life and disability Insurance is the most effective and cost-efficient strategy to help partners plan for the future.