Partnership Protection
Partnership Protection is used to protect business partners and partner's families against the death or disability or a business partner. 'Own Life' policies are arranged, in trust, on the lives of the partners.
A Partnership Agreement will normally be drawn up which ensures that the surviving partners can purchase the deceased partner's share of the business. There are three main forms of agreement: Buy & Sell Agreement, Cross-Option Agreement or the Automatic Accrual Method.
Advice must be taken when setting up an agreement.