Buy-Sell Funding

An integral part of any succession plan is to ensure that funding will be available to facilitate the purchase and sale of an owner’s business interest should catastrophic death or long term disability occur. Preparation for this event applies whether you are a corporation with a shareholder agreement or in a partnership arrangement. The succession plan should not only fund the ownership transfer but also should provide liquidity for related income taxes.

Life or disability insurance is generally the most efficient way to fund these obligations. Relying on bank loans, personal wealth or other funding arrangements cannot be guaranteed when death or disability occurs unexpectedly. We've seen all too often where the deceased's family finds all their wealth tied up in the business while facing a loss of income, estate taxes that are payable but unfunded and a partner who is unable to live up to the planned Agreement.

We will work with you to develop insurance strategies to fund your Agreements. Insurance application to cover these situations is one of the most common business uses of insurance.

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