AG2304. Buy-Sell Agreements and Farm/Ranch Transition

This session discusses the use of buy-sell agreements in transitioning the farming/ranching business. What is the best type and why does it matter from an income tax and estate tax standpoint? How should the agreements be structured and how can they best be used with life insurance as a funding mechanism?

Learning Objectives:

• Interpret the distinguishing characteristics of various types of buy-sell agreements and what the language of the documents means for tax and non-tax purposes.
• Evaluate the tax implications of the various types of agreements and the impact of entity-owned life insurance on entity value for tax purposes.