IF in your own name, or that of a Company or Trust, you hold with other parties an interest in a business or jointly held asset AND on the death, trauma to or disability of one of the people with whom you are in business or hold the asset you need to provide: a structured … Read more
Each party that holds an interest in a business or jointly held asset will: take out a life, trauma and/or disability insurance policy in respect of the person who represents that party in the ownership of the business or asset; and grant to the other an option on death, trauma and/or disability to be able … Read more
Buy Sell Agreements can cover more than just interests in a business. They can be effective for any jointly owned asset.
You will need to: decide on what events you want to cover (life, disability, trauma); and then find out from your insurer about the cost of that insurance, as cost can sometimes be too much to justify proceeding with it. Before you agree on the form of the insurance to be taken out, you should … Read more
As you can insure against death, trauma and disability, they are often the events covered in a Buy Sell Agreement. When they occur, if insurance policies are in place, there is certainty as to the availability of the funds required to transfer the interest in and control of the business or asset. However, other events, … Read more
It is an enforceable contract between owners of a business or jointly held asset dealing with the transfer of ownership in and control of that business or jointly held asset.
As mentioned, a Buy Sell Agreement will provide a: structured timetable for; and ready and adequate source of funds to permit both: the purchase by non exiting partners at an agreed value of an exiting partner’s interest in a business or jointly held asset; transfer of control in that business or asset to the non … Read more
You should ensure that the amount of insurance cover always reflects the market value of the insured’s interest in the business or jointly owned asset. At least annual reviews should be done. Remember, you may: not always be able to get more insurance in the future so you may prefer to get it while you … Read more