Tax Issues in Buy-Sell Agreements
Structuring Agreements for Optimal Income and Estate Tax Results for Partners and Shareholders
Recording of a 90-minute premium CLE/CPE webinar with Q&A
This CLE course will prepare tax counsel to address key components of buy-sell agreements, including valuation methodologies and timing, as well as the income and estate tax implications that must be considered in structuring the agreements.
Outline
- Critical buy-sell provisions
- Structuring the buy-out: cross-purchase v. entity purchase; cross-insurance trusts
- Funding mechanisms: insurance, cash flow, loans, sinking funds, reserves, installment payments
- Trigger events: lifetime transfers, termination, retirement, disability, death
- Purchase price and payment
- Key factors in determining price
- Payment terms
- Valuation issues
- Valuation of company
- Valuation of ownership interest
- Methodologies and timing
Benefits
The panel will review these and other key questions:
- What are the tax implications for cross-purchase v. redemption forms of buy-sell agreements?
- What income tax ramifications arise in the various methods of funding the buy-out?
- What estate tax planning opportunities must be addressed when structuring buy-sell agreements?
Faculty
Steven M. Dane
Member
Kostin, Ruffkess & Company
He has over 26 years of professional experience concentrating in the areas of valuation and litigation support... | Read More
He has over 26 years of professional experience concentrating in the areas of valuation and litigation support services. He also assists clients with their mergers and acquisitions, financing, tax planning and general accounting and tax matters. He presently serves on the Firm’s Board of Directors.
CloseAllen M. Silk
Shareholder
Stark & Stark
He chairs the Firm’s Business & Corporate Group. His experience includes a broad range of tax, trusts and... | Read More
He chairs the Firm’s Business & Corporate Group. His experience includes a broad range of tax, trusts and estates and general corporate matters including estate planning, closely-held business counseling and business succession planning, structuring of business entities and joint ventures, acquisition and sale of business interests, and corporate and partnership tax matters.
CloseBrian E. Hammell
Attorney
Cushing & Dolan
He is the Director of the firm’s Corporate Department. His practice concentrates in business law, employment law,... | Read More
He is the Director of the firm’s Corporate Department. His practice concentrates in business law, employment law, commercial litigation, shareholder agreements, and business reorganizations. He is experienced in areas of business litigation, debtor and creditor rights, secured lending, mergers and acquisitions, and other commercial transactions and disputes.
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