Welcome back! In our last post, we began talking about the importance of having a partnership agreement incorporated in your estate planning in Raleigh, should you own a business with another individual. As we mentioned, there are several ways to incorporate a partnership agreement. The first option our lawyer in Raleigh NC will talk about is a buy-sell agreement.
Buy-Sell Agreement | Lawyer in Raleigh NC
A buy-sell agreement is, simply, a contract that binds two business partners to the future ownership/outcome of the business they own together. It does not, however, have anything to do with actually buying or selling a business. A more appropriate term might be buyout agreement, instead of buy-sell.
A buy-sell agreement might document the following:
- Whether or not the remaining partner must buy the business out or if it will be gifted to him.
- Document the price that will be paid for the business, should a partner depart from the business due to an illness, incapacitation, or death.
- Disclose who might be eligible to buy the departed partner’s share, should the remaining partner not want to buy it out.
- Document any and all reasons that could lead to the need for a buyout on either partner’s part.
In a way, a buy-sell agreement is more or less like a prenuptial agreement. Things don’t always go as well as they were intended to, in the beginning. Things happen that are out of our control. Planning for these things within your estate plan is important.
Estate planning in Raleigh NC is one of the most important parts of life that often times get overlooked. If you’ve yet to begin planning and think now is a good time to do so, contact our lawyer in Raleigh NC to begin estate planning, today.
For more information regarding a partnership agreements, estate planning in Raleigh, and buy-sell agreements that should be incorporated into your estate plan, visit back with our estate lawyers in Raleigh NC, soon.
Are you looking for a lawyer in Raleigh NC to help you get started with an estate plan? Contact Klish and Eldreth, PLLC to schedule a consultation with us to get started with your estate plan. We are here to help you with all your legal matters, whether it be estate planning in Raleigh NC, trademarking, copyrighting, or DWI issues.