Even if you have personal life insurance with your spouse or family member as the beneficiary, you can still use a separate life insurance policy through your company or co-owner(s) to fund a buy-sell agreement.
There are many benefits of a buy-sell agreement, including the following:
- Establishing a valuation of a deceased owner’s interest in the business for estate tax purposes
- Establishing a mutually agreeable price and terms, to reduce potential litigation and friction in the future
- Helping facilitate the smooth transition of management
- Making sure the family of the deceased owner receives cash instead of unmarketable stock
Learn more about the protection and peace of mind that a buy-sell agreement can provide for you and your company. The Hull Group can help.