Houston Estate Planning and Elder Law Attorney Blog
A buy-sell agreement is a legal provision of an estate plan that details how the estate owner’s business will transition to different ownership when he or she dies. Buy-sell agreements are critical for business owners’ estate plans, as they help ensure that a business can continue to thrive even if the unexpected occurs. On today’s blog, we review some of the basics of the buy-sell agreement, as well as why they are so important for estate planners to consider.
What are the Elements of a Buy-Sell Agreement?
Each buy-sell agreement can look different, and the particular elements will depend in large part on the business owner’s goals. It is common, however, for a buy-sell agreement to include a list of triggering events that put the buy-sell agreement into effect. While the owner’s death will certainly qualify as a triggering event, it’s likely that the owner’s incapacitation and/or voluntary departure will also be triggering events.
The agreement will also include information about how to value the business, the specific buy-out procedures, and restrictions on who is legally able to purchase the owner’s shares of the company. These provisions should be as thorough and detailed as possible.
Why Include a Buy-Sell Agreement?
There are various benefits to the buy-sell agreement, the first being that it helps ensure your business can thrive even when you are not around to see it through. The agreement can ensure continuity from one owner to the next, and it can help the business avoid legal battles over who should step in to take the original owner’s place.
When done correctly, the buy-sell agreement can also help minimize the owner’s estate taxes. In order to make sure you receive the maximum benefit from your agreement, we recommend that you consult with a high-quality Houston estate planning attorney that can take a look at your business and help you decide how to draft your agreement in the context of your overall estate plan.
Do You Need a Houston Estate Planning Attorney by Your Side?
At McCulloch & Miller, we are committed to providing the best representation possible for our beloved Houston community. If you are thinking through the aspects of your estate plan and you don’t know where to turn, get in touch with one of our Houston state planning attorneys today. We have been advocates for aging Americans for over 30 years, and our team prides itself in providing integrative estate, tax, and planning services for our clients. We believe that you should not have to compromise in quality when seeking legal representation, and we strive to offer top notch services for those in their estate planning journey.
If you would like to set up a call with one of our Houston estate planning attorneys at McCulloch & Miller, give us a call at 713-936-9073. You can also fill out our online form to tell us about yourself and have a member of our team contact you as soon as possible regarding next steps. Our firm handles matters related to estate planning, probate administration, elder law, public benefits planning, trust planning, and more.