Shareholder Agreement Funding

Risk Management Capital Gains Protection Will Planning Retirement Income and Estate Analysis Shareholder Agreement Funding Services

Some years ago, we were involved in a situation where three individuals had bought a well-established company. All three were equal shareholders of this firm and for some years, all went well. When one of the shareholders was killed in an accident, the remaining owners and the widow found out that they had left themselves open for some expensive and nerve-racking estate problems. On the death of the shareholder, his widow inherited his shares and became a one third owner in a business that she knew nothing about at a time when her only priority should have been her two children. At the same time, the remaining two owners were dealing with the loss of a friend but also the "brains" behind the firm. Almost right away, the company's bank expressed concern about the viability of the company with only the remaining two owners. The owners themselves realized that to buy back the widow's 1/3 interest was going to take more cash than they could raise in the foreseeable future. If you own and operate your own business, you have very unique estate planning concerns. We will work with you, and if appropriate, your lawyer and accountant to determine the best way to create and fund a share repurchase plan that will protect your family and your business from unexpected disaster.