We advise and consult on various measures to ensure continuity of businesses in the event of the death of a co-owner, a guarantor shareholder’s estate or a key person. This ensures that the business will continue with minimal disruption and unwanted parties getting involved.
Buy-and-sell agreements assists business owners in ensuring business continuity in the event of a co-owner’s death or disability. It is an agreement between the members of a business entity, obligating themselves, in the event of the death or disability to sell their inertest to the survivors at a pre-determined rate and likewise obligating the survivors to purchase the deceased members interest This purchase is funded through life insurance policies.
Contingent liability protection safeguards both business interests and the personal estate of a shareholder who has signed surety for business finance. The business insures the life of the guarantor shareholder and pays the premiums, signing an agreement to undertake to use the proceeds from the policy to settle the outstanding debts, releasing the shareholder’s personal estate of liability. We oversee the entire process, ensuring that the life cover and disability benefit is equal to the total outstanding debt and makes provisions for estate duty.
Key person protection refers to a policy affected by the business against the risk of the death or disability of a crucial member of staff. The plan guarantees that the business will be compensated for any loss of income arising from such a key person’s death or disability and protecting existing credit facilities. The business insures the life of the key employee to absorb losses from disruption to business and from the costs involved in training and recruiting a replacement for the key person.