The death of an owner or partner of a business can cause financial problems and hardship for the business. It can also significantly affect the income of the owner’s or partner’s family. Buy-sell agreements are 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:

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

Benefit Design will help you determine how to best use insurance policies to protect the interests of your business.

For a no-obligation quote, use our online Quote Forms under Resources or call 480.998.0096.