Buy-sell agreements are ubiquitous and virtually always problematic. This class will address a number of issues that create problems when buy-sell agreements are triggered, focusing on what can be done now, with new agreements, or with modifications to existing agreements, to prevent future time bombs from exploding on clients. The class will analyze the various forms of buy-sell agreements typically utilizes, including entity/redemption agreements, cross-purchase agreements and hybrid arrangements. Because Life insurance is frequently used to fund buy-sell agreements, this course explores many of the hot-button issues that arise when life insurance is utilized as a funding vehicle. In this course, students will:

• Learn how the type of purchase arrangement affects basis, as well as various non-tax issues
• Discover how life insurance may become subject to income tax if you don’t avoid traps involving business-owned life insurance
• See how holding life insurance outside of the business entity can meet important tax and non-tax objectives
• Learn how policy transfers may eventually subject the death benefits to income taxation
Review recent cases involving split-dollar arrangements
• Review the advantages and disadvantages of buy-sell agreements.
• Learn about possible purposes of buy-sell agreements.
• Understand the importance of coordinating the buy-sell agreement with other contracts and agreements.
• Identity the proper parties to buy-sell agreements.
• Understand proper triggering event selection
• Review valuation issues in buy-sell agreements.
• Explore buy-sell agreement funding issues.
• Understand disability issues in buy-sell agreements.
• Review special S corporation buy-sell agreement issues.
• Be exposed to ethical issues surrounding the buy-sell agreement representation.

The course requirements are comprised of four video lectures which will be followed by a 10 question multiple choice test.