Business Estate Planning: Preserving Your Life’s Work for You and Your Family

By: Ian S. Giovinco, Esq.

Will your business survive the death, disability or retirement of an owner? Buy-Sell agreements among business partners can provide the following benefits:

  • Prevent conflict with surviving owners spouses
  • Ensures your family receives a fair value for the shares of your business
  • Provides needed cash for family
  • May set a value of your business for estate-tax purposes
  • May provide supplemental retirement benefits upon retirement or buyout
  • Keeps new/unwanted owners out your business
  • Prevents disputes between families
  • Ensures continuity and orderly transfer of ownership
  • May provide tax-free cash to purchase partner’s stock
  • May provide cash for purchasing partner’s shares upon their retirement

Too often I see Buy-Sell Agreements that will not provide all the above benefits. Many Cross Purchase or Stock Redemption Buy-Sell Agreements will cause adverse tax effects for the Partners. Furthermore, many Buy-Sells only work well upon the death of a partner and do not consider disability, retirement or sale of the business. There is another option for structuring a Buy-Sell Agreement that will provide the above benefits and may help protect assets from creditors now and upon the owner’s retirement or sale of the business or practice. Please contact me to discuss all the options for a successful Business Continuation Plan.

Ian S. Giovinco, Esq.

Of Counsel
Trusts, Wills & Probate Attorney & Lawyer in Tampa, FL

Office Phone: (813) 907-9807