Buy Sell Agreements
One business and estate-planning tool that can protect your family and your partners in business is a buy-sell agreement. The buy-sell gives business owners the first opportunity to buy an interest in the business if another owner wants to retire, becomes mentally incapacitated or dies. The best time to enter into a buy sell is at the start of one’s business; however, a buy sell agreement can be entered into at any time.
Do not wait too long. If you die without a buy sell agreement, it may be difficult for your heirs to know what to do and the lapse in time while they are trying to understand what to do may have a negative impact on your business’ value. The time to prevent disputes is before they happen. What follows are just a few of the questions that should be addressed to see where you may need assistance from your business and estate-planning attorney to prevent or lessen the severity of problems:

• Should the agreement apply only to the current owners or should it be binding on all owners throughout the life of the business entity?
• Should the agreement be reviewed annually, especially to determine if the price to purchase a partner’s interest should be changed?
• Should the buy-sell agreement be structured to require the seller to sell and the buyer to buy, or should it give the buyer an option to require the seller to sell?
• Should the agreement provide that a buyout be funded by life insurance or some other method such as an installment sale?

If you would like detailed information on any of the above resolutions, please call Attorney Howard Stross.

STROSS LAW FIRM, P. A.
REAL ESTATE LAW • TITLE INSURANCE • BUSINESS & ESTATE PLANNING
Howard C. Stross *†‡ hstross@strosslaw.com
Dwayne F. Jotch djotch@strosslaw.com
1801 Pepper Tree Drive, Oldsmar, FL 34677
Phone: 813-852-6500 Fax: 813-852-6450
Or visit www.strosslaw.com

*Also admitted in Michigan and District of Columbia
†Board Certified Real Estate Attorney (Florida)
‡Member, National Network of Estate Planning Attorneys