Business Buy-Sell Agreement
Read the scenario and propose your solution.
Client Scenario
Two partners, both age 45, co-own a successful small business valued at $2 million. They need to create a buy-sell agreement to ensure a smooth transition of ownership if one of them dies. What type of life insurance arrangement (e.g., cross-purchase or entity-purchase) would you recommend, and how should it be structured?
Your Recommendation
Based on the scenario, outline your recommendation. Explain your reasoning clearly.