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 estate plan1 upside down, even resulting in estate tax

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.

DOTING DAD

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