Partnership Insurance

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:

  1. The heirs are absolutely bound to sell.
  2. The surviving partners are bound to buy.
  3. The price or formula to be used when the survivors pay the heirs is stated clearly.