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Hi Mark Kohler here with another two minute tax and legal tip lets talk about buy-sell agreements now this is a very important document that many partners dont implement in a small business but is absolutely critical to maintaining the viability of the business upon the death of one of the partners and also making sure that the surviving family the deceased partner see the value theyre entitled to now with the planning mechanism like this theres a lot of options and details but I will share with you the strategy i think is most applicable for the average small business partnership and thats the cross purchase buy sell agreement our situation like this youd have two partners who would buy a life insurance policy on the other and then upon the death upon the partners the surviving partner would receive the death benefit tax free he could then take that death benefit and buy out the family at the deceased partner for a predetermined amount and theyd received that tax-free as well b
