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Entity Purchase Buy-Sell is a plan to provide for the orderly transition of
ownership and management in a partnership or closely held corporation when a
partner or stockholder dies.
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If fully funded with Life Insurance, such a plan can:
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Preserve the value of the business interest for surviving family members by
guaranteeing a market at a predetermined price.
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Provide the funds, exactly when needed, to carry out the plan.
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Supply cash to pay estate settlement costs and provide income for surviving
family members.
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Fix the value of the business for federal estate-tax purposes.
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Other Advantages of the Insured Buy-Sell Entity Purchase Agreement:
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Surviving business owners are protected because they will acquire the deceased
business owner's interest.
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Creditors and employees are assured that the business will continue if an owner
dies.
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The disaster of an unplanned liquidation is avoided.
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