Buy/Sell Agreements - Funded with Life Insurance

CREATING THE RESOURCES TO FINANCE A PURCHASE

Whether through dissatisfaction, death or injury, if an active shareholder in a business can not continue to participate in its operation, a disruption can ensue.

As a legal document, a Buy-Sell Agreement can act like a “business will” by clearly articulating terms for acquiring the shareholder’s interests.

This agreement needs to be properly funded while providing details in areas such as how the business will be valued, how long a sick or hurt shareholder will continue to receive a salary and how a disability is defined.

Working with a Leipert Financial Group advisor, your accountant and lawyer, the appropriate Buy-Sell Agreement can be developed for your unique circumstances.

The Buy/Sell Agreement may create an opportunity for shareholders to purchase a deceased or injured partner’s interests, however having the necessary financial capacity can prove to be a challenge.

Buy/Sell Agreements funded with Life Insurance can act as the vehicle to make sure surviving shareholders can continue to operate their business without interruption when the unexpected occurs.