When one business partner dies, that deceased partner’s portion of the business transfers to their heirs, usually the spouse. In small businesses, this means that death of one partner means that the surviving partner is now in business with the spouse. Many times, the spouse of the deceased partner can wreak havoc on the business, interfering with its management. One way to address this is through the use of a Buy-Sell Agreement which provides the surviving partner an opportunity to protect the business by buying out the deceased partner’s share. This solution keeps a business intact, while also providing the deceased spouse’s family with the economic benefit of the sale.
To learn more about business succession, call Fortune DNA today at 702-637-4040.