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Business owners are aware of the dangers when a co-owner or partner dies and most discerning business men realize that they are brought here to be sure! It is also important that there is not just an insurance policy must be taken out and the paperwork the kooples and especially the Purchase and Sale Agreement to be in place. the kooples
The remaining owners may not have the money for the interest of the deceased owner's estate sale. The spouse of the deceased owner may not want to participate in the venture, which means she probably left to the mercy of the existing owners; The deceased owner may have unique skills have which skills then the company lost. This increases the risk in the business. The owner probably died a salary in the business earns. So if the owner dies, the spouse can not obviously entitled to that income unless she herself in the company would do the same job as the deceased owner. It would be an unfair burden on the company takes to pay salaries to people who are not in the business together.
The executor of the deceased owner's estate may be in the company of which he more or less knew nothing would interfere; He may be the deceased owner's interest to the highest the kooples bidder to sell, which in turn open for business "strange" shareholders; and The existing owners may not have the funds together to get the shares in the company to buy and external funding can be very expensive.
It is important to note that the collaboration in a close corporation (if one is set) is usually a emptive to the other co-owner (s) granted. Such a emptive creates an opportunity for the first interest of the deceased co-owner sale, but it usually does not take an obligation on the parties to each other again and again the importance of buying at death and / or disability of a fellow owner.
In order to do estate planning, there may even be considered a trust to establish and percentage interest in the close corporation to the Trust to transfer. The Trust is a member of the CC and the agreement so set that the Trust, the kooples at the death of each member, the deceased member's share sale. Insurance in terms of such a sale and purchase agreement the kooples is taken out, free of estate taxes. You therefore create additional likiditet the kooples in your estate free of any additional estate tax.
Let do a proper estate planning the kooples to determine how much insurance is needed and who the owner of the insurance should be. Bring your will in line with estate planning done. Do not hesitate to approach an expert for advice!
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