Buy-sell agreements can be used to help solve the estate tax valuation and liquidity problems involved in the transfer by death of an interest in a small business.

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Buy-sell agreements can establish a predetermined value for a business interest, which helps in estate tax valuation, and they can also ensure that there is a buyer, providing liquidity for the estate to pay taxes and other expenses associated with the transfer of the business interest upon the owner's death.

Buy-Sell Agreements Can Be Used to Help Solve the Estate