Estate Planning With Buy-Sell Agreements: Buy-Sell Plan Options, Key Provisions, Formulas, Valuation, Funding

A buy-sell agreement is essential to estate planning and business succession. Estate planners can ensure optimum succession planning and estate tax benefits by expertly structuring a buy-sell deal for family businesses.

The primary objective of a buy-sell agreement is to provide stability for a family business upon the owner's death, disability, or retirement. However, for estate planning purposes, these agreements can provide (1) a market for an illiquid asset, (2) liquidity to pay estate taxes, (3) provide for the surviving spouse and heirs, and (4) lock in the value of ownership interest for estate tax purposes.

To fully unlock the estate planning and tax benefits of a buy-sell agreement, estate planners must determine which type of buy-sell agreement to use, key terms when structuring or modifying these agreements, restrictions on transfers and other rights, funding options, and other vital issues.

Listen as our panel discusses drafting considerations, valuation challenges and formulas, and other critical issues for estate planning with buy-sell agreements.

1. Benefits of buy-sell agreements in estate planning
2. Key provisions and considerations when structuring buy-sell agreements
3. Types of buy-sell agreements
4. Funding options
5. Coordinating the buy-sell agreement with the estate plan
6. Valuation

The panel will discuss these and other key issues:

• What are the critical considerations in utilizing buy-sell agreements in estate planning?
• What factors impact which type of buy-sell agreement should be used?
• What funding options are available, and what are the related challenges?
• How can you ensure optimum estate planning and tax benefits of buy-sell agreements?
• What valuation issues arise, and how does it impact the estate plan?