Oregon Partnership Buy-Sell Agreement with Purchase on Death, Retirement or Withdrawal of Partner with Life Insurance on Each Partner to Fund Purchase in Case of Death

• Category: Partnerships - Buy
• State: Multi-State
• Control #: US-13267BG
• Format: Word; Rich Text

Description

This type of agreement states that if one partner dies, or becomes so disabled they can't function, the other partner (or partners) has the legal right to buy out their stake in the company. The Oregon Partnership Buy-Sell Agreement with Purchase on Death, Retirement, or Withdrawal of Partner with Life Insurance on Each Partner to Fund Purchase in Case of Death is a legally binding agreement commonly used by businesses operating in Oregon. This agreement protects partners and their families in the event of a partner's death, retirement, or voluntary withdrawal from the partnership. The primary purpose of this agreement is to determine how a partner's share of the business will be valued and transferred when certain triggering events occur. To fund the purchase of a partner's share, life insurance policies are taken out on each partner, ensuring that the necessary funds are available in case of the death of any partner. Here are some relevant keywords associated with this type of agreement: 1. Partnership Buy-Sell Agreement: This refers to a legally enforceable contract that prescribes the terms and conditions governing the sale and transfer of a partner's interest in a partnership. 2. Purchase on Death: This term signifies that the agreement includes a provision in which a partner's share is automatically purchased by the remaining partners upon their death. 3. Retirement: This keyword highlights that the agreement also covers situations where a partner elects to retire from the partnership, triggering the sale of their share. 4. Withdrawal: This term denotes that the agreement accounts for voluntary withdrawal from the partnership by a partner, which necessitates the sale of their interest. 5. Life Insurance: Referring to the coverage provided on each partner's life, this keyword emphasizes the funding mechanism for purchasing a partner's share upon their death. Different types or variations of this partnership buy-sell agreement may exist, depending on specific circumstances and the preferences of the partners involved. These variations might include factors such as the valuation method used, the insurance policy terms, or additional triggers for a buyout, such as disability or bankruptcy. It is important for partners to customize their partnership buy-sell agreement to suit their unique needs, consult with legal and financial professionals, and regularly review and update the agreement to ensure it aligns with the current status and goals of the partnership.

The Oregon Partnership Buy-Sell Agreement with Purchase on Death, Retirement, or Withdrawal of Partner with Life Insurance on Each Partner to Fund Purchase in Case of Death is a legally binding agreement commonly used by businesses operating in Oregon. This agreement protects partners and their families in the event of a partner's death, retirement, or voluntary withdrawal from the partnership. The primary purpose of this agreement is to determine how a partner's share of the business will be valued and transferred when certain triggering events occur. To fund the purchase of a partner's share, life insurance policies are taken out on each partner, ensuring that the necessary funds are available in case of the death of any partner. Here are some relevant keywords associated with this type of agreement: 1. Partnership Buy-Sell Agreement: This refers to a legally enforceable contract that prescribes the terms and conditions governing the sale and transfer of a partner's interest in a partnership. 2. Purchase on Death: This term signifies that the agreement includes a provision in which a partner's share is automatically purchased by the remaining partners upon their death. 3. Retirement: This keyword highlights that the agreement also covers situations where a partner elects to retire from the partnership, triggering the sale of their share. 4. Withdrawal: This term denotes that the agreement accounts for voluntary withdrawal from the partnership by a partner, which necessitates the sale of their interest. 5. Life Insurance: Referring to the coverage provided on each partner's life, this keyword emphasizes the funding mechanism for purchasing a partner's share upon their death. Different types or variations of this partnership buy-sell agreement may exist, depending on specific circumstances and the preferences of the partners involved. These variations might include factors such as the valuation method used, the insurance policy terms, or additional triggers for a buyout, such as disability or bankruptcy. It is important for partners to customize their partnership buy-sell agreement to suit their unique needs, consult with legal and financial professionals, and regularly review and update the agreement to ensure it aligns with the current status and goals of the partnership.