Estate Business Transfers
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Estate Considerations for Business Transfers
Also see Buy-Sell Agreements. An estate plan has to be carefully coordinated with a buy-sell agreement in order to avoid potential conflicts. The following steps describe this process in general terms, but an extremely careful scrutiny needs to be afforded this area of law.
- The business interest must be determined exactly in order to provide protection from and limitations on family and other claims.
- Identify any restrictions on the seller’s ability to transfer the business interest, e.g., professional licensing requirements for owners.
- Use experts to determine the approximate value of the business interest.
- Consider the testator’s liquidity needs
- Identify the events that would trigger the buyout.
- Will the purchase be mandatory?
- Establish the terms of the payments.
- How will the funding for the buyout be accomplished?
- Plan for continuity in operating the business.
There are many other entity specific requirements that must be satisfied depending on whether a corporation, LLC or partnership are involved that require extremely careful legal planning.
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Commercial Law & Contracts
Mergers & Acquisitions
Science, Computers, & Tech
Wills & Trusts
Estate Planning In San Jose
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