Sabotaged

When drafting an estate plan, it's critical to be aware of any buy-sell or other agreements that may be binding on the client's estate at death. While the buy-out price set in such an agreement is enforceable for contract purposes, it may not be for estate-tax purposes. Without proper planning, such an arrangement could turn an otherwise simple “A/B” estate plan¹ upside down, even resulting in estate tax due at the death of the first spouse to die.