Business succession planning involves a buy-sell agreement funded by life insurance. Proper legal documents and life insurance planning can help ensure that your business will pass into the hands of the successors you choose.
Without a business succession plan, Uncle Sam could easily become your primary heir. Or, your business could pass to family members who may be unable or unwilling to maintain it. If your family were forced to quickly liquidate your business to raise cash for estate taxes and settlement costs, your loved ones probably wouldn't receive the going market value. A buy-sell plan funded by life insurance engineers an orderly transfer of your business to the successor of your choice at an agreed-upon fair market value. Life insurance covers the majority of the costs of your business purchase for pennies on the dollar.