Chapter 10: Buy Sell Agreements

Entity (liquidation) Agreement

Buy sell agreement that provides that the entity will purchase and then liquidate the interest of a decedent partner at death

Cross Purchase Buy Sell Agreement

Contract binding closely held business interest owners to purchase an owner's business interest upon the occurrence of stipulated events, such as death

Stock Redemption Buy Sell Agreement

Contract in which a closely held corporation is bound to purchase a shareholder's business interest upon the occurrence of certain specified events, such as death

Entity Purchase Agreement

Contract in which closely held business interest owners bind the business entity to purchase an owner's business interest upon the occurrence of specified events, such as death

Buy Sell Agreement

Planning method used for the disposition and continuation of small business interest, the goals of which are the acquisition of a decedent business owner's interest by one or more business survivors or by the entity itself, and to peg the value of business interest or stock for transfer tax purposes