Buy/Sell Life Insurance
There is considerable planning that goes into running a Colorado business. This is especially true if there is more than one partner involved in the business. It is important to have a clear understanding and agreement if something should happen to one of the owners. Buy/sell agreements among co-owners, or present and future owners, of a closely held business are intended to ensure the smooth future transition of its ownership. They provide the mechanism, and, if properly funded, the means to effect a change in control and transfer of interests.
Buy/sell life insurance can fund the exchange of company ownership. Consider buy/sell disability insurance and keyman insurance, too.
Here Are Some Of The Benefits Of A Buy-Sell Agreement
- Provides recovery for partners and heirs
- Tax advantages
- Provides for transfer of ownership and wealth
- Creates fair and market value exchange of ownership
What Can Be A Trigger For A Buy/Sell Agreement?
Death, disability, retirement, divorce, loss of license, termination, and voluntary transfer of ownership.
How Is A Buy/Sell Agreement Funded?
Any buy/sell agreement requires a decision regarding the type of life insurance policy to purchase. The initial choice is between term and permanent life insurance. The ability to maintain life insurance throughout a shareholder’s life is important. Of course, there are other methods of funding including cash, borrowing, and stock. But the most common form of funding is life insurance. Contact us today.