The Strategic Importance Of A Well Crafted Buy-Sell Agreement

What happens to a client’s interest in his/her closely held company when he dies? What happens to the remaining owners and the viability of the business after one of the owners dies? How do owners of a business reconcile differences with each other over management of the company or when one owner wishes to sell part or all of their ownership interest in the company? Business lawyers and estate planners who are familiar with protecting their clients’ most valuable assets, their families, and their clients’ second most valuable asset, the business interests they own, can help their clients prepare for the ultimate day when one of the owners dies, becomes disabled, seeks to retire from the business, or becomes irretrievably opposed to the other owners on the fundamental direction of the company.

One tool used to handle these situations is a well-crafted buy-sell agreement, strategically designed to protect the owners’ interests and their families. A buy-sell agreement that compliments and ties in to the clients’ overall estate plan and asset protection goals. A well crafted buy-sell agreement provides control over the transfer of ownership under specified circumstances.

The time for business owners to agree upon the material terms of a well crafted buy-sell agreement is long before it is needed. It is important to agree upon the terms of such a fundamental part of any business owners’ business and estate plans while the owners are all getting along and amendable to any needed compromises.

Buy-Sell “Triggers” are the events described in a buy-sell agreement that trigger the applicability of one or more of the agreement’s provisions. Triggers can be one, several, or all of the following: (1) Death of a partner or shareholder; (2) Divorce of an owner; (3) Insolvency of an owner; (4) An owner’s business ownership interest becoming subject to a judgment creditor; (5) The desired retirement of an owner; (6) Permanent disability of an owner; (7) An owner’s desire to sell some or all of his/her ownership interest in the business; and (8) Fundamental disputes between the owners that can only be resolved by one owner buying out the interests of the other owner.

The attorneys and lawyers at the law offices of AttorneyBritt have substantial experience in crafting a well designed buy-sell agreement, which is fully integrated into the asset protection, estate planning, and other client objectives. Whether the buy-sell is to cover a single entity with two owners or multiple entities and multiple owners, Attorney-Britt has the experience, training, and judgment to secure the protection of both your 1st and 2nd most precious assets.

For More Information Contact The Atlanta, Georgia Law Offices Of AttorneyBritt:

AttorneyBritt
Gary L. Britt, CPA, J.D.
1200 Abernathy Road, Suite 1700
Atlanta, Georgia 30328

404-567-6445

“Lawyer's That Mean Business”

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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