Yes, many people utilize buy-sell agreements. With the agreement called the cross-purchase plan, the partners in the business determine the value of a share. Each partner takes out an insurance policy on every other, and the total will equal the value of a share in the business. When one partner dies, the insurance policy proceeds will be used to purchase the share that was owned by the deceased partner from his or her family.
/ / Is there a succession strategy for small business partners?