Be prepared for a “triggering” event — If you own interests in a closely held business, consider a buy-sell agreement

Description

Abstract: A buy-sell agreement provides for the disposition of each owner’s business interest after a “triggering event,” such as death, disability, divorce, termination of employment or withdrawal from the business. However, to be effective, the agreement must include the appropriate provisions. This article discusses the benefits of buy-sell agreements and the three types available. It also examines some of the tax and valuation issues involved.