A properly executed and funded buy-sell agreement is the ideal solution to the thorny problems incurred by a partner’s death, unless the shares pass to each other in a Will. The buy-sell agreement should be drawn by lawyers and such agreements generally contain the following commitments:
- The heirs are absolutely bound to sell.
- The surviving partners are bound to buy.
- The price or formula to be used when the survivors pay the heirs is stated clearly.
