Sole Proprietor Buy-sell Plans ✔

Unlike traditional buy-sell agreements between multiple partners, a sole proprietor agreement usually involves an external buyer:

: The buyer (e.g., the key employee) typically owns the policy on the life of the proprietor and is the named beneficiary. sole proprietor buy-sell plans

Life insurance ensures the buyer has the funds to fulfill their legal obligation to purchase the business. sole proprietor buy-sell plans

An effective agreement should be drafted by legal professionals and include: Funding a Buy-Sell Agreement with Life Insurance sole proprietor buy-sell plans

: Business-paid premiums are generally not tax-deductible. Essential Plan Components