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