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Buy / Sell Agreements

 

Buy / Sell Agreements

As a successful business owner, you have worked hard to reach your goals and it is probable that your business has become one of your most valuable assets. But, have you considered what would happen to your business and family should you unexpectedly die or become disabled?

When examining different strategies, it is important to select a buy-sell life insurance agreement that insures a smooth transition of ownership and protects your family’s financial future.

 

What is a Buy-Sell Agreement?

A buy-sell agreement is a contract among business owners. At the loss of an owner, the business interest is transferred according to the terms of this contract. The other owner(s) are obligated to purchase the deceased’s business interest and the deceased’s heirs are obligated to sell.

 

How a buy-sell agreement can help?

A buy-sell agreement gives employers peace of mind knowing that their business is in capable hands should they no longer be able or want to manage it. It also:

  • Provides money to create a fair market value exchange
  • Promotes equitable and orderly transfer of wealth, ownership and management
  • May offer tax advantages
  • Guarantees heirs a buyer for assets they may not know how to manage
  • Provides heirs cash to pay estate debt, expenses and taxes