A PLAN FOR TRANSFER OF OWNERSHIP AND CONTINUITY OF BUSINESS
Transfer of Ownership Plan
A buy-sell life insurance agreement dictates terms for a transfer of ownership, including necessary circumstances, sale price, recipients, and payment details.
Directions for Transition
The upheaval a business experiences upon the death or incapacity of an owner is detrimental to financial and company stability. A buy-sell agreement instructs owners and employees in how to ensure a smooth transition for the business, employees, and customers.
Binding Rules for Transfer
Since a buy-sell agreement is a binding legal contract, all parties are assured terms will be met. Remaining owners know ownership rights will not transfer to an undesirable party.
Assistance with Funding
Coming up with cash to buy a departed owner’s rights is difficult for most remaining business owners. A buy-sell agreement consists of life insurance purchased by the partners on each other. If one owner dies, the insurance payout provides the funds necessary for the remaining owners to purchase the deceased owner’s share of the business.