the right buy sell

The Right Buy-Sell Agreement for Your Client

In this April 2012 article from LifeHealthPro, Russell Towers, BSMG’s Vice President, Business and Estate Planning, discusses what happens to a business owner’s shares of a company upon their death. One way to guarantee the shares will be legally transferred to the right successors at the right price is through the use of insurance-funded business transfer plans. This article summarizes the basic structures of the four types of buy sell agreements: cross purchase agreements, stock redemption (entity plan) agreements, unilateral (one-way) agreements, and cross endorsement agreements. These four types are where life insurance is used to guarantee funding of the purchase price on the death of a shareholder.
Download a PDF of the article or read it on the web.