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if your business is owned by multiple partners ask yourself what impact with the death of a partner have on my business while unpleasant to think about every business owner should plan for the loss of a partner do you have a buy sell agreement a buy sell agreement transfers ownership of your business to the successor of your choice it has three key advantages one it creates a guaranteed buyer - it prevents conflict among successors and 3 it establishes business value for estate tax purposes there are several ways to find a buy sell agreement you can set aside capital or get a bank loan by preserving capital is generally inefficient in getting a loan after the death of a partner can be difficult an effective tax advantaged way is with life insurance at the death of a partner your business receives tax-free proceeds from the insurance company that can be used to buy out the deceased partners interest having a fully funded buy sell agreement is an efficient way to protect your business ha
