Where a business is owned either individually or jointly with others through a company, trust or a partnership, it is vital to protect the value of that business that a business succession strategy is developed and put in place.
Most commonly, multiple business owners enter into "Buy/Sell" or shareholder agreements that establish the criteria upon which the interest of each owner is valued upon their retirement or death. These agreements can also implement strategies, usually involving insurance, to enable the continuing owners to come up with the money to purchase the interest of the retiring or deceased owner at an agreed value.
However buy/sell agreements are only one of numerous options that are available to people in business to ensure that they or their estate receives maximum after tax advantage from their business investment after death. |
