Buy Sell Agreements
The death or disability of an owner of a business typically is very disruptive and often leads to the business failing. By allowing Southern Financial Service to custom tailor a properly designed buy sell agreement, a business can be provided the necessary financial resources to allow the business entity to continue to function during the difficult period of transition.
Properly structured, the Buy Sell Agreement will provide the estate of the decedent the ability to sell its interest in the business at a reasonable price. A Buy Sell Agreement is a contract that binds the owner(s) of a business interest to sell at his or her death and a designated buyer to buy the business interest for a specific or determinable price. Purchasers of the business interest will obtain the business interest and avoid the difficulties associated with passing it through probate.
Southern Financial Services are experts in the structuring of business continuation plans. Without such a plan, an executor may be compelled to sell the business interest to pay federal/state tax and estate settlement cost. Estate settlement costs must be paid in cash promptly after a business owner's death, under these circumstances, the Executor may be placed in the position of a forced sale and often the yield would be far less than its full market value. The surviving business owner may then be forced to work with the new owner that may or may not be someone that has the same business philosophy.
