Using Life Insurance to Fund a Business Buy-Sell Arrangement

Cornell University

Using Life Insurance to Fund a
Business Buy-Sell Arrangement

by Loren W. Tauer
Department of Agricultural, Resource,
and Managerial Economics Cornell University

Many successful businesses, including farms, are closely held, with only a few owners.What happens to these businesses if one of the principal owners dies?Do they continue?Often the remaining owners can manage the business quite successfully.Their problem is the financial ability to buy the deceased owner’s share of the business from the estate or heirs.A solution might be a buy-sell arrangement funded with life insurance. More…

The Group Throne

The Group ThroneUMass

by Ira Bryck

Two brothers listened intently to the compelling words of their dear, departing father. “You both worked very hard in our family business. You did your jobs well and you each struggled to show me how you could lead this company one day. Sorry, but I just couldn’t pick one of you above the other. Finally, I’ve made my decision. I want you to both be presidents…Co- Presidents. But listen up: if and when you can’t agree, when you’re in absolute deadlock, call my brother Michael in California. I know you never liked him, but he’s a smart guy. He’ll listen to both sides, and then decide. More…