Buy-sell agreements can ensure continuity

Description

Abstract: A buy-sell agreement is a critical component of business continuation and succession planning for partnerships. This agreement sets the terms, conditions and price at which an owner’s business interest can be sold to another owner (or owners) before an unexpected tragedy happens. It also places a value on the business for federal estate tax purposes. This article explains how buy-sell agreements can help avoid turmoil and conflicts and describes the two main types of life insurance-funded buy-sell agreements: a cross-purchase agreement and an entity purchase agreement.