Insurance addresses what will happen to the business
when the owner or key employees dies or is in some
other way unable to continue to contribute to the success
of the business. Will heirs have enough cash to pay
for estate taxes? Will other owners want to continue
the business with the deceased owner's heirs?
These issues can be solved with the use of a buy-sell
agreement. A buy-sell agreement is a contract between
two or more parties involved in a business. The agreement
can be between shareholders of a corporation, partners
of a partnership, or a key employee and a sole proprietor.
The agreement obligates the surviving owners, a key employee or the business itself to purchase the interest of the deceased
Advantages of a Properly Drafted Buy-Sell Agreement
a guaranteed market for the business interest
An attorney will draft the buy-sell agreement. To fund
the agreement, life insurance should be considered since
insurance proceeds offer the advantage of being available
when needed, regardless of when the owner dies.
those who are interested in continuing the business
to do so without interference from the deceased owner's
liquidity for the estate of the deceased owner by turning
the business interest into cash
the value of the business for federal estate tax purposes
Shoreline's Competitive Edge
Whatever your need, protecting an business' ability to continue and contribute
to the income and net worth needs of survivors or avoiding unnecessary financial
hardship in the event of injury or death, business insurance is a key component
of any serious wealth management plan businesses should consider. There are many
plans and competitive rates Shoreline Wealth and Investment Management can assist
you in obtaining.
For more information:
If you'd like more information about how diversified investment advisors can help you achieve your financial objectives through personalized wealth or retirement and risk management strategies, please contact us. We welcome the opportunity to discuss your unique needs and how we may best meet them.
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Charles M. Bloom, Registered Principal offers securities
and advisory services through Centaurus Financial, Inc. - Member FINRA and SIPC - 775 Avenida Pequena, CA, 93111 (mailing address: 3905 State Street Suite 7173, Santa Barbara, CA, 93105) - CA Life Insurance License No. 0A52786 - Centaurus Financial, Inc. and Shoreline Wealth & Investment Management are not affiliated companies.
The information contained in this web site is neither an offer nor solicitation of any security or service.