Buy Sell Agreement For Insurance Agency

Any business must have an agreement for the death, obstruction or retirement of the owners. The damage suffered by a company not planning these events can be devastating not only for the Agency, but also for family members. In the end, the company can be sold to a good deal, perhaps it needs to be drastically reduced, or even totally collapsed. Proper planning will limit most problems and allow the Agency to be successfully maintained. A version of this article originally published in the September 2019 issue of Thomson Reuters` estate planning journal. Buying and selling agreements are critical when it comes to a narrow business, but are often ignored or briefly shrunk by business owners. Life insurance is an effective instrument for entrepreneurs to implement the provisions of a purchase-sale contract by providing liquidity to their business and family in the event of the death of an owner. As a result, a properly crafted purchase-sale contract can prevent the interests of a deceased owner from being transferred to others who do not want the remaining owners not to stick to the business, and it can also provide cash for the estate of a deceased owner. The triggering events of a buy-sell contract can go beyond death and voluntary transfers for life.

A possible involuntary transfer, such as a transfer that could result from divorce or bankruptcy, may also trigger purchase rights or obligations. .