Buy-Sell Funding

Buy-Sell Funding

A buy-sell agreement is a legal agreement that helps define what happens to an ownership interest in a business upon certain events, such as death, disability, retirement, or other triggering events described in the agreement.

Life insurance may be used as a funding source for certain buy-sell arrangements. The type and amount of coverage should be based on the business structure, ownership interests, valuation, and terms of the agreement.

Legal and tax advisors should be consulted to draft and review the agreement and determine the appropriate structure. We can provide general information about insurance products that may help fund a properly documented arrangement.