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What is a Buy-Sell Agreement?
A Buy-Sell Agreement is a contract providing for the sale of
a business ownership interest when a specified event happens.
Generally, this event is the death of one of the business owners,
but it can also be disability or retirement.
A fully-funded buy-sell agreement can help solve many problems
arising at the death or disability of a business owner. The surviving
owners want to retain control of the business while the deceased’s
heirs require funds for income and/or for the payment of death
taxes or administrative expenses. The needs of both the deceased’s
heirs and the surviving owners can be taken care of with a properly
designed buy-sell agreement.
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