Legal Question in Business Law in New York

Partnership buy out arrangement

I want to buy a commercial building with a partner, however I'm concerned that if he pre-deceases me I will be stuck in a partnership with one of his heirs. I know that I could take out life insurance on both of us that will guarantee buy out if one of dies unexpectedly. What do I need to know to do this? Are there any other alternatives?


Asked on 6/24/07, 11:42 am

4 Answers from Attorneys
William Frenkel Frenkel Sukhman LLP

Re: Partnership buy out arrangement

Generally the available alternatives all rely on some form of a buyout that can be provided for contractually. These include various versions of buyout provisions which can be triggered on the occurrence of specified events (such as death, disability or retirement). However, some of them do not have to be funded by insurance proceeds.

Feel free to call our office if you need assistance with drafting and negotiating the partnership agreement.

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Answered on 6/24/07, 12:36 pm
Robert R. Groezinger GroezingerLaw P.C.

Re: Partnership buy out arrangement

A buy-sell agreement would be needed. All you are speaking about is how to fund it...not how to make it happen.

Good Luck

RRG

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Answered on 6/24/07, 12:45 pm
Johm Smith tom's

Re: Partnership buy out arrangement

Form an LLC.

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Answered on 6/24/07, 2:43 pm
Christopher Hoyt The Law Offices of Christopher W. Hoyt

Re: Partnership buy out arrangement

Depending on your goals you will have a couple of different options. These issues are usually resolved while forming a business entity or in a buy/sell agreement. Please feel free to contact my office if we can be of any assistance in this matter.

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Answered on 6/24/07, 10:45 pm


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