Buy-Sell Arrangements

 

  • Three types:  Entity Buy-Sell, Cross Purchase Buy-Sell and Partnership Administration Succession Strategy (PASS).

  • Written agreements that allow for the purchase of a business owner/partner’s interest in the event of disability, death, divorce or departure of a co-owner. The Arrangement used depends on one that is best for the business structure.

  • Insurance usually is the funding mechanism for the plans.

  • A Disability Buy-Sell can be implemented to cover the long term disability of owner when there are two or more owners.  Insurance is purchased specifically for that purpose.

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