1. Why is it important to have a discussion about buy-sell agreements in the context of estate planning?
The ownership interest in a closely held business represents a substantial portion of an individual’s wealth. Determining how much his or her family will be paid for that interest and when payment will occur is a very important part of the estate plan. If the value is trapped in the business or can only be extracted over a long period of time, that changes how the surviving spouse and family can expect to enjoy the transmission of wealth.