Ace Benefits Group - Buy-Sell Agreement

Buy-Sell Agreements

The death of an owner or partner of a business can cause financial problems and hardship for the business. Buy-sell agreements are

plans

used by members of a partnership and stockholders in closely-held corporations to assure that funds are provided to allow

remaining

owners to buy the deceased's portion of the business.

In order to guarantee a buyer for the interest in a business, consideration should be given to a lifetime agreement among the business

owners as to how to dispose of or continue with the business.

Advantages of Buy-Sell Agreements

Can guarantee a buyer for an asset which may not pay regular income to one's heirs.
Under certain circumstances, can establish a value for federal estate purposes which is binding on the IRS.
Can spell out the terms of payment and is easily funded by life insurance and disability insurance, if desirable.
Can provide a smooth transition of complete control and ownership to those who are going to keep the business going.

Buy Sell Agreement