Options for funding a buy-sell agreement: the case for life insurance

Do you know what will happen to your business interest in the event of your death? What if you become disabled or seek to retire?

First, you should check your legal agreement. Your legal agreement dictates how your business operates, including provisions like governing structure, owner responsibilities and financial matters, among others. In some cases, your agreement will address what happens to your business interest in the event of certain occurrences. In others, however, your agreement will not cover all of the situations required to truly protect you and your business interest. This is where a separate legal agreement (buy-sell agreement) – addressing your death, disability and retirement – is critical.

Download our e-book to understand:

• Why a buy-sell agreement may be right for you
• Why you may need funding options and some common alternatives to funding options
• How you can fund a buy-sell agreement with life insurance

Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.

Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. The name Baker Tilly and its associated logo is used under license from Baker Tilly International limited. The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. © 2024 Baker Tilly Advisory Group, LP

Baker Tilly Wealth Management, LLC (BTWM) is a registered investment advisor. BTWM does not provide tax or legal advice. BTWM is not an attorney. Estate planning can involve a complex web of tax rules and regulations. Consider consulting a tax or legal professional about your particular circumstances before implementing any tax or legal strategy. The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. BTWM is controlled by Baker Tilly Advisory Group, LP (Baker Tilly), a tax and advisory firm. Baker Tilly is an independently owned and managed member of Baker Tilly International. ©2024 Baker Tilly Wealth Management, LLC