Buy Sell Agreement with Corporate Trustee
A buy or sell agreement sets out an arrangement designed to protect the interests of the departing owners and the remaining owners, while preserving the business itself.
There are two key features to a buy or sell agreement:
- the transfer aspects of the transaction
- the funding arrangements.
The features of the buy or sell agreement may raise additional tax issues, such as CGT.
Agreement with Corporate Trustee
Buy Sell Agreement with Corporate Trustee includes all the aspects of a Buy/Sell Agreement including:-
- Provisions for corporate trustees
- Contemplates ownership of shares in the business via trusts
A Buy Sell Agreement for use with co-owners of a business who own their shares through a trust.
A Buy Sell Agreement, also known as a buyout agreement, is a legally binding agreement between co-owners of a business that governs the situation if a co-owner dies or is otherwise forced to leave the business, or chooses to leave the business.
It may be thought of as a sort of premarital agreement between business partners/shareholders or is sometimes called a “business will”. An insured buy–sell agreement (triggered buyout is funded with life insurance on the participating owners’ lives) is often recommended by business-succession specialists and financial planners to ensure that the buy–sell arrangement is well-funded and to guarantee that there will be money when the buy–sell event is triggered.
14 pages long.