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

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