Buy-Sell Strategies
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The buy-sell agreement is at the heart of succession planning. Properly designed and funded, this plan can
determine who will take over the business and at what value. It can transfer ownership to those who will remain active in
the business and help make sure you and your heirs receive a fair price for your business interests.
Partnerships or corporations can set up a buy-sell agreement in the form of:
- A cross purchase, in which the estate of the deceased owner sells the business interest to a surviving business associate.
- An entity purchase, in which the estate sells the business interest to the business entity. Funding a buy-sell agreement with life insurance can help ensure that your family or estate is paid fair market value in cash at a vital time.
If the business is sold to a surviving owner, life insurance can provide the cash needed to buy your interest, thereby assuring a smooth, complete transition of management and control.
A financial services professional at our firm can review your options for a buy-sell agreement.
Neither MassMutual nor any of its employees or agents are authorized to give legal or tax advice. Consult your own personal attorney legal or tax counsel for advice on specific legal and tax matters.
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