Month: October 2013

While we just finished the sixth and last of the different Buy-Sell agreements, a brief summary should be in order to tie things up before we progress. First of all let's review the TRIGGERING EVENTS. Then we'll give a very...

This is a very specific form of a Buy-Sell Agreement, a PARTIAL STOCK REDEMPTION. It is worth mentioning as it can save thousands if not millions in tax dollars. However, be careful in that it can be used ONLY IN C...

This is our fourth form of a BUY-SELL AGREEMENT, The Trusteed Buy-Sell plan. Actually it's a variation of our second type of Buy-Sell, a Cross Purchase Plan. However, there is ONE BIG DIFFERENCE. In the Trusteed form of a Buy-Sell, it is...

Anytime we discuss the importance of a KEY PERSON in a business, you should assign a value to that individual. Let's first expand on the importance of the KEY PERSON. The great entrepreneur Andrew Carnegie once said, "You can tear...

Key people in any business, although not directly related to Business Succession planning, do play an important role in developing your business succession plans. As such, I would be remiss if I didn't take some time to share some information...

In closing our discussion of the One Way Buy-Sell, keep in mind that this agreement is most suited for a sole proprietor. It also carries with it some of the strengths of the other forms of Business Succession planning. Namely,...

Up to now we've been discussing Buy-Sell Plans that seem to focus on corporations and partnerships, business entities that have many owners. However, we will not leave out the Sole Proprietor. The beauty of Business Succession planning is that there are always...

In concluding the Business Succession plan using a Wait and See approach, let's review some disadvantages. Perhaps the biggest drawback comes from a stipulation in the Wait and See agreement that requires periodic updates to the plan. Such updates are usually...