In the field of estate planning, buy-sell agreements can sometimes be used as a reaction to a rather challenging situation. You may want to consider using a buy-sell agreement if you are a partner in a small business. This is a form of business continuation agreement that you enter into with the other partners. In this post we will look at two different types of buy-sell agreements. Cross Purchase Plan One very simple and straightforward type of buy-sell agreement is the cross purchase plan. … [Read more...] about What Is a Buy-Sell Agreement?
Estate planning can be somewhat confusing for small business partners. You may not be sure about how (and when) you want to exit the business. If you do have ideas, you may not know how to make your vision for the future become a reality. Small business partnerships come in various different forms. The partners could be family members, or they could simply be business partners who are not related. One of the concerns would be the matter of liquidity and inheritance balancing. Let's assume that … [Read more...] about Estate Planning for Small Business Partners
Life insurance plays a big role in estate planning. In a general sense it may seem obvious that you can certainly purchase life insurance to leave behind some financial resources to loved ones after you pass away. However, life insurance can serve very specific purposes when certain circumstances exist. For example, life insurance is the operative solution at the root of buy-sell agreements. These agreements are often used by small business partners. To allow the remaining partners to retain … [Read more...] about Life Insurance and Estate Planning
Going into business for yourself is a huge undertaking, and most of us are aware of the fact that the majority of business start ups do not withstand the test of time. Therefore, your primary focus when you first get started is going to be to simply become profitable and stay in business. But at the same time, you do have to keep an eye on the future. Once you have a foothold and recognize that you will be in business for the long haul, you have to come full circle and ask yourself how you will … [Read more...] about Coming Full Circle as a Business Owner
Estate planning is something that requires personalized attention, and it is a very good idea to retain the services of a good San Jose estate planning lawyer as soon as you become a responsible adult with people depending on you. Your lawyer will guide you in the right direction given your intentions, your family dynamic, and your unique situation. The above having been stated, people who own small businesses are in a different position than those who work as employees. Everyone has to plan … [Read more...] about Have You Considered A Succession Plan?
Different individuals have different needs when it comes to devising an estate plan, and this is why it is important to receive personalized attention from a professional when you are making preparations for the future. There is no "one-size-fits-all" estate planning strategy. This is something to keep in mind if you happen to run across websites claiming that you can plan your own estate by filling in the blanks on a generic document. One of the situations that can call for specialized … [Read more...] about Planning For Small Business Partners