Buy-sell agreement
If a business owner meets the definition of a Trauma, Total and Permanent Disablement, or Death, the departing business owner’s insurance will buy the departing owner out of the business.
There are multiple avenues to consider when creating a buy-sell agreement, such as ownership structures, tax implications, (income tax, capital gains tax, and fringe benefits tax) and the need for an estate planner and accountant to assist in the preparation of a buy-sell agreement.