Business Buy Sell Agreement Life Insurance

Purchase and sale contracts are often used by sole proprietorships, partnerships and entered into companies to facilitate the transfer of ownership when each partner dies, retires or decides to leave the business. In the event of the death of a partner, the estate must consent to the sale. Just as no good estate plan is complete without a will, no good business plan is complete without a shareholders` agreement. If properly written and approved by all parties, it will avoid many potential conflicts between shareholders on the street. And life insurance can help you achieve this goal A key element of a good shareholders` agreement is the buy-sell that specifies how shares are transferred in the event of retirement, disability, death, bankruptcy or adultery ☛ Do you leave your share to your children (who may or may not be in business)? Are they willing to run the business and get your shares? The life insurance option generally offers the cost-effective opportunity to finance a buy-sell contract when the owner dies….