What Is a Buy-Sell Agreement?

The process of estate planning can be a bit confusing for small business owners, especially if there are partners in the business. How would things play out after the passing of one partner? This type of situation is often addressed through the creation of a legal device called a buy-sell agreement. Let’s look at the details. Buy-Sell Agreements We will explain by way of example. For the purposes of our example, you are one of three partners in a small business. The business is quite successful, and the business shares are valuable. In fact, your share in the business is your single most valuable asset. After you pass away, you want the value to be spread around among multiple different inheritors. How can you facilitate this? If you simply allow your family to sell your share after your passing, your partners would be forced to deal with the outcome whether they liked it or not. The same situation would apply to you if you were a surviving partner, and this loss of control can be d


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