GLOSSARY · TAX & ESTATE

Buy-sell agreement

A contract among business owners, and often the company, that sets who will buy an owner's interest after death, disability, divorce, departure or deadlock, at what price and on what terms. It is usually funded with life and disability insurance, installment notes or savings. Since 2024, an entity-purchase agreement funded with life insurance can raise the estate tax value of the shares.

Also called: buyout agreement, cross-purchase agreement, redemption agreement
COMPUTE IT WITH YOUR NUMBERS
Federal estate tax (2026 $15M) + non-resident $60k mode →Will my estate owe federal estate tax?
LEARN IT PROPERLY
CHAPTER · WEALTH PROTECTION FUNDAMENTALS · FOUNDATIONSBusiness Succession and Buy-Sell Agreements
RELATED TERMS
Grantor retained annuity trust
SOURCES
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