With many provisions of the Tax Cuts and Jobs Act of 2017 potentially expiring at the end of next year, business owner clients may need new or updated buy-sell agreements. Buy-sell agreements are crucial for business owners looking to manage their estates and ensure smooth succession. There are three types of buy-sell agreements that business owners typically choose from: entity-purchase, cross-purchase, or hybrid agreements. Dawn highlighted that buy-sell agreements can be tailored to the specific needs of the business and its owners, addressing various scenarios.
“Many people are choosing to gift closely held stock because of the decreasing exemptions, and if you are doing that, you also need to look at a buy-sell agreement, it’s become an ancillary discussion that has to happen.”
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