It is important that you do make a valid and binding Buy/Sell agreement but it is important that you get the right advice from the right people.
The process of designing an effective buy/sell insurance package should include the following professional services working together:
Financial adviser
Accountant
Solicitor
The role each person performs is:
Financial Adviser deals with:
- The type of Insurance covers available
- Evaluating the amounts of cover
- Selecting appropriate insurances with appropriate features
- Assisting in the Underwriting Process
- Assisting in the Claim process if required
The Accountants role is to:
- Consider tax implications for premiums and insurance proceeds
- Confirm your business structure
- Establish trusts if necessary (Taxation aspects and Ongoing Operations)
The Solicitors role is to:
- Draft the Buy/Sell Agreement in a legally binding manner
- Ensure that your rights are protected
Work within the confines of the appropriate commercial law of the time.