If you do not have a family member who is willing or able to fill your shoes, you and your business partners should consider drafting a “buy-sell agreement”. This binding contract is internal to the business, and can become enforceable upon your incapacity, disability, or death. The “buy-sell” mechanism can be a great help to all of the co-owners of the business. Although there are several ways the remaining owners can come up with the cash to buy out your interest, life insurance has proven to be a frequent choice. It is one of most straightforward and streamlined tools in crafting a reasonable buy-out of your interest.
Our expert advisors can offer their expertise in conjunction with your chosen legal or tax advisor. We have the insurance tools that will customize a buy-out for you and your co-owners or partners.