Buy Sell Agreement with Corporate Trustee

Download Buy Sell Agreement with Corporate Trustee in word format.  Save and reuse as you need.

PRECEDENTS ONLINE

 

ONLINE LEGAL DOCUMENTS

 

 

Buy Sell 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.

 

A buy/sell agreement is a contract between business partners where the surviving partners buy out the other partner’s interest should a specific event occur. Specific events usually include death, and long-term disability. A buy-sell agreement can consist of several clauses in a partnership or shareholder agreement. It can also take the form of a separate, freestanding agreement. This suite contains free-standing agreements that can be used together with a partnership, company or unit trust.

An insured buy-sell agreement is one in which a triggered buyout is funded with life insurance. A policy is taken out on each of the participating owner’s lives. The life insurance policy provides the surviving partners with the money to be able to buy out the deceased/disabled/departing partner’s interest.  Such an arrangement is often recommended by financial planners to ensure the buy-sell there will be money when the buy-sell event is triggered.  The funding aspect is covered in a separate agreement called a buy/sell funding agreement.

Capital Gains Tax implications

A trauma or total and permanent disability insurance policy is subject to CGT if it is owned by the business. Only a trauma or total and permanent disability insurance policy owned by the insured is exempt.  The business owner often holds the policy on themselves. As the buy/sell agreement results in the sale of the business, a CGT liability will arise to the vendor. The small business CGT concessions may operate to reduce this CGT liability.

Deductibility of premiums

The essential characteristic of a deductible insurance premium is that it be intended to provide an income. A self-employed business owner can claim a deduction for premiums on a policy which will pay income during a period they are disabled. Normally, if a policy includes a component to pay a sum on death or disability, the component relating to death cover will not be deductible.

 

buy sell agreement

 Looking forward to purchasing more precedents as it’s a great service for a small legal practice just starting out.

Have a wonderful weekend!
Maree Stuart

Solicitor/Director, Lab Law

I have used Precedents Online since starting up my business over 5 years ago.  There are many documents I was able to download and use to help with the start and running of my online business.

Amanda King

Director, By The Horns

I have found Precedents Online to be very useful for my business.  I have also used them for personal legal documents.  Simple and easy to use.  I don’t have to fill out any forms or subscribe.  I can simply download the document I need and reuse it when I need it.  

Alan

Director, Promoworld

Trusted By

Online Legal Documents
Legal Templates Australia
Legal Forms NSW
Legal Documents NSW
error: Content is protected !!