Ensure business succession plans are funded. A Buy-Sell Agreement allows for the continuation of the business by providing an agreed-upon transition plan. It is one component of business planning and should be viewed within the context of long-term business and succession planning. In addition to providing a ready market for the business, it can ensure that the price for both buyer and seller is a fair one. In many instances, the agreed-upon price can set the value of the business for estate planning purposes. Life insurance is a cost-effective solution to help fund the buy-sell agreement. Make sure your business owners have a buy-sell agreement in place and that it also is funded with life insurance.
