Whether you own a partnership or corporation, we can help you set up a buy-sell agreement while you are alive and capable of doing so. We will help you value your company and set up the right Buy-Sell Agreement to meet Canada Revenue Agency's (CRA's) standards.
We can determine if the company has the cash flow or a large amount of money available to fund the buy-out of the deceased or disabled owner. If not, permanent life insurance can be used to fund a buy-sell agreement as it can pay a large amount of tax-free capital at the right time-at the decease of the business owner.
We will meet with your lawyer and the buyers' lawyers. After it is drafted, all parties will review it to their satisfaction, and then sign it to make it legal. It is suggested that the life insurance be purchased first to ensure that one is insurable. Even where there is a medical problem, in many cases, there is an insurer willing to design a policy to suit the risk, based on the respective health of the individual.