Finding a Buy-Sell Agreement
Finding a Buy-Sell Agreement
If a shareholder becomes disabled, retires or dies, a buy-sell agreement may require that their stock be acquired by the corporation. Life insurance can help fund this expense.
Advantages & Considerations
- Remaining stockholders are protected from “outside” beneficiaries who may not be familiar with the corporation
- Stockholder or their estate can receive immediate cash payment
- A reasonable sale price can be set in an agreement that will establish the stock’s value
- Premium payments are non-deductible by the corporation
