IMPORTANT – Buy Sell Arrangements
Before you carry on reading, let me warn you that the content of this article is going to be confronting.
As a scenario – you and your business partner own the shares in your trading company. Let’s assume it is correctly structured.
However, one key element has been overlooked. There is no written and documented buy sell agreement.
Your business partner passes away and once the funeral is over, their estate has been settled and the reality has set in, that person’s spouse walks into your office and says: “Hi, I am your new business partner”.
Dumbfounded, you think: “How is that possible?”
Reading your thoughts, he | she says: “My spouse left the shares in the business to me – in the will”.
Is that really what the intention was? How are you going to manage that “new” relationship? Maybe it’s fine. But on the other hand, maybe it isn’t.
What can you do to plan for the unexpected?