The Brass Tacks of Corporate Buy-Sell Agreements
Probate and Property. January/February 2004, Volume 18, Number 1
By Denise Brunson Schuh and Steven B. Gorin
Denise Brunson Schuh is a vice-president and relationship manager with Fulton Financial Advisors, N.A., in Lancaster, Pennsylvania and is a Fellow of the Real Property, Probate and Trust Law Section.
Steven B. Gorin is a partner with Thompson Coburn LLP in St. Louis, Missouri. This article was a project of the C-2 Estate Planning & Administration for Business Owners Committee.
A corporate buy-sell agreement is an indispensable business succession tool because it not only can create a market for the sale of closely held stock but also can provide liquidity to the family of a deceased shareholder to meet estate-related expenses. The following summary of buy-sell agreements will review the types of buy-sell agreements and common funding methods and discuss the tax considerations for each type of agreement.