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A Buy and Sell Agreement
Concerning discussions regarding uses of Life Insurance, we need to look at life insurance as a tool that uses leverage to accomplish a task. One of these uses addresses eliminating a potential problem with people who are partners or co-owners of a business. What happens when one owner passes away? What happens to their share of the business? Life Insurance can be used to provide a remedy for this issue by providing financial funds for a Buy-Sell agreement.
What Is a Buy and Sell Agreement?
A buy and sell agreement is a legally binding contract that stipulates how a partner’s share of a business may be reassigned if that partner dies or otherwise leaves the business. Most often, these agreements stipulate that the available share be sold to the remaining partners or to the partnership.
The buy and sell agreement is also known as a buy-sell agreement, a buyout agreement, a business will, or a business prenup.
KEY TAKEAWAYS
Buy and sell agreements are commonly used by sole proprietorships, partnerships, and closed corporations in an attempt to smooth transitions in ownership when each partner dies, retires, or decides to exit the business.
The buy and sell agreement requires that the business share be sold to the company or the remaining members of the business according to a predetermined formula.
In the case of the death of a partner, the estate must agree to sell.
Listen to More Episodes here!
Do you have a question? Email jay at [email protected]
Visit my website here www.kingdomplanadvisory.com
Follow us on Facebook https://www.facebook.com/mykingdomplan/?ref=bookmarks
The post A Buy and Sell Agreement appeared first on Ultimate Christian Podcast Radio Network.
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By Jay Dee Schurz
3
11 ratings
Concerning discussions regarding uses of Life Insurance, we need to look at life insurance as a tool that uses leverage to accomplish a task. One of these uses addresses eliminating a potential problem with people who are partners or co-owners of a business. What happens when one owner passes away? What happens to their share of the business? Life Insurance can be used to provide a remedy for this issue by providing financial funds for a Buy-Sell agreement.
What Is a Buy and Sell Agreement?
A buy and sell agreement is a legally binding contract that stipulates how a partner’s share of a business may be reassigned if that partner dies or otherwise leaves the business. Most often, these agreements stipulate that the available share be sold to the remaining partners or to the partnership.
The buy and sell agreement is also known as a buy-sell agreement, a buyout agreement, a business will, or a business prenup.
KEY TAKEAWAYS
Buy and sell agreements are commonly used by sole proprietorships, partnerships, and closed corporations in an attempt to smooth transitions in ownership when each partner dies, retires, or decides to exit the business.
The buy and sell agreement requires that the business share be sold to the company or the remaining members of the business according to a predetermined formula.
In the case of the death of a partner, the estate must agree to sell.
Listen to More Episodes here!
Do you have a question? Email jay at [email protected]
Visit my website here www.kingdomplanadvisory.com
Follow us on Facebook https://www.facebook.com/mykingdomplan/?ref=bookmarks
The post A Buy and Sell Agreement appeared first on Ultimate Christian Podcast Radio Network.