If you and your partner own the business and he/she dies without a buy/sell agreement or, worse yet, without money to fund the agreement, you just inherited a new partner - the deceased’s spouse. Your retirement plans and plans to sell or expand could be shattered.

If your agreement states you must buy the shares from the deceased’s estate and his/her estate must sell the shares to you on a predetermined formula, then you have the potential of owing the company - but another road block - where do you raise the money?

The solution - you own an insurance policy on his/her life and he/she owns one on your life. Now you have the money to fund the buy/sell agreement. It has been said you are a lot better off to have money to purchase the shares than you are to have the obligation to buy the shares as per an agreement and no money.

We will work in concert with your other professionals in the formulation of a plan tailored to meet your needs. We encourage you to seek professional advice on both your legal and accounting questions.