Small Business Owners Buy-Sell Agreement Funding

Small Business Owners Buy-Sell Agreement Funding

If you are a small business owner in California and you have business partners and shareholders, then you’ll want to listen up a bit. Orange County estate planning lawyers can help.

Have you and your partners prepared for what would happen if one of you passed away? It is  important to have this sorted out before something happens as it can determine how your estate — and the estates of those still living and deceased are affected.

For the buying and selling of shares after a partner is deceased, the best type of funding according to many analysts, is life insurance. You’ll need to have current financials and other details to present to your California estate planning attorney in order to set up a life insurance plan that covers buy-sell agreements, but it’s well worth your while.

If one business partner dies and there are three others remaining, say, those three will want to have the ability to buy out the decedent’s share of the company, usually equally so that as little as possible changes. This can all be best handled — and most inexpensively handled — via life insurance that is tailored specifically to your estate as a small business owner.

If you are a small business owner and you’d like to know more about life insurance that offers you a fair chance at buying out deceased partner shares, or if you’d like to offer this kind of protection to your partners mutually, contact your Newport Beach estate planner today.

Jeff Matsen has handled many clients with small to large business legal needs; the experience you will get here is unrivaled in California.