Buy/Sell AgreementA Buy-Sell Agreement is legally binding agreement between owners of a business to have the capability of purchasing the other partner’s business shares and interests in the event of death or becoming incapacitated. Funding the buy-sell with a life Insurance policy can be used to ensure the availability of funds which would then be used for the buyout of deceased partner’s shares.Who should have a Buy/Sell AgreementIf you are a sole business owner or have one or more partners, a buy/sell agreement can provide confidence knowing that if a pre-mature death or disability occurred, the business would have a clear direction on what was to happen and how. The business could continue to operate without interruption. For business owners, anticipate that certain situations such as incapacitation, divorce, bankruptcy, retirement, or death can happen anytime. These situations might put the business’ stability at risk, exposing it to the possibility of liquidity problems, ownership disputes, and eventually, failure to operate.There are 3 ways to fund an agreementFrom profits of businessCreate a side cash accountUse life insuranceWhy use life insurance as a funding mechanism for the agreementAvailability of lump sum cashThe proceeds are generally tax-free, or be subjected for alternative minimum tax for C Corporations.Immediate payment of proceeds after death, to ensure the agreement is carried out efficientlyDepending on the policy, the funds can be used to purchase business interests of the owner following retirement or disabilityAs a business owner, you want to prepare for whatever situation that may arise. Having a funded Buy-Sell Agreement can help answer the question, “How well are you planned and how can you tell”. Call Innovative Financial Group for a complimentary conversation to ensure you have planned for what is important to you.Business StrategiesBusiness ContinuityBuy/Sell AgreementCross Purchase AgreementEntity PurchaseKey Person InsuranceSuccession Planning ServicesBusiness StrategiesGroup Benefits401KDeferred CompensationExecutive Benefit PackagesPersonal Insurance PlanningLife InsuranceLong-Term Care InsuranceDisability InsuranceSpecial Needs InsurancePersonal Financial PlanningInvestmentsRetirement PlanningCollege SavingsInnovative Financial Group – Atlanta 3520 Old Milton Parkway Alpharetta, GA 30005You Can Call Us Now: 678-338-4400 Have a Question Name Email Phone Question Thank you! Oops!