To properly handle the orderly transfer of business ownership at death, it is necessary to have:

Question

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Having a life insurance contract to fund the purchase ensures that there is enough cash to buy the deceased owner's share of the business from the estate. A funded buy-and-sell agreement allows for the orderly transfer of ownership, while also ensuring that the deceased owner's heirs receive fair compensation for their share. A verbal understanding or commitment is not legally binding and can lead to disputes and complications.

To Properly Handle the Orderly Transfer of Business Ownership at Death