Buy-Sell Agreements in Estate Plans Can Meet Asset Protection, Estate Management, and Tax Deduction Needs

Doctors who own a business have unique needs when it comes to estate planning and tax planning. Throughout their lives, they face numerous challenges in their profession. Most doctors in the USA are concerned with three prominent issues in their financial lives – taxes, probate and malpractice lawsuits. Many doctors face litigious patients who are more interested in filing lawsuits that finding a cure. Therefore, companies like Beam A Life is here to help doctors draft their estate plans, tax plans and secure their properties against all kinds of lawsuits.

Why does a business owner need estate planning?

The most important essence of estate planning for business owners is the protection of their assets, business, and reduction in taxes. If you are a doctor with a business, your company likely has its own property, assets, equipment, and receivables. Having an estate plan helps you establish an inheritance plan for the time you will not be here. It can divide your assets among your children or preferred heirs in the manner you desire.

It is time to draft a buy-sell agreement

Sometimes, upon the death of the owner of the business or the doctor in practice, his estate and business assets can be sold. Do you know who would buy your interest? Does your heir know the value of your business? Having a buy-sell agreement can save you from all the headache. The contract can bear answers to all those questions. It can state the real value of your business among other things. Drafting a buy-sell agreement is never easy. Beam a Life has teams of trained lawyers and financial advisors, who can help you, chalk out an effective buy-sell agreement quickly. We have often seen a mass ripple effect as a result of a business transition. It can affect state property laws, employment agreements and regulations relating to professional liability.

How have buy-sell agreements become integral parts of estate planning for doctors?

The secret of a favorable buy-sell agreement is the attorney‘s coordination with the estate planning attorney. It is always better for a physician to choose a financial planning firm that has the experience of working with high-net-worth professionals. Such companies usually have all the talent necessary to take care of all the aspects of estate planning including buy-sell agreements.

As per the buy-sell agreement, an owner can choose to execute their agreement such that their assets are convertible to cash upon their death. It is much easier for a group of doctors or physicians practicing, who are parts of the same business, to become the corresponding shareholders. However, even for individuals, it is possible to designate shareholders who are somewhat obligated to purchase the business stock at the fixed price mentioned in the agreement.

Why do you need an experienced attorney to help you?

Under the IRC Sec 2703, the federal government and IRS can disregard any purchase agreement dated after October 8, 1990, in valuing a closely held business. It can only be recognized if:

  • It is a bona fide business agreement.
  • It is not a document that facilitates the transfer of property to family members for less than full consideration.
  • A willing buyer and a seller should be acting independently of each other, in their own interest to facilitate the best price for the asset.

The buy-sell law is only legitimate if the following conditions hold:

  • The estate must sell the assets or stocks upon the death of the owner. A mandatory agreement should reinforce this.
  • The agreement must dictate the sale price. It can be a dollar amount or a formula for representing the possible selling value.
  • The agreement must also prevent the doctor from selling his business stocks and assets during his life, without offering it to his partners (other owners) and the business.
  • The price in the agreement has to be fair as per the valuation of contemporary times.
  • If the price of the agreement is lesser than the market value, then it should not be used for estate evaluation purposes.

As the owner of the estate, you must know that the agreement will not necessarily set the fair market value for tax. It holds true if the agreement is between close family members or friends. The fair value of the business is the retail amount at the time of execution of the agreement. While, you can always access online software and calculators to help you calculate your estate value, net worth, earnings history and the estate tax during rough time of execution, it is always better to go to someone you can trust. Turn to Beam a Life for an instant evaluation of your assets, the fair market value and estate tax. Our teams can also help you find new and smart ways to save your assets from capitals gains taxes, income taxes, and death taxes.

What do you need to know before opting for a buy-sell agreement?

Before you can go ahead with your buy-sell agreement, let us tell you a little more about it:

  1. You need to get one as early as you can. Waiting around till the last date is not going to help you or your family. Having an agreement beforehand with an executor with legal experience will help your spouse and children, especially if they have no experience in business transactions.
  2. Buy-sell agreements can reduce the impact of the blow. Sometimes, involving a financial advisor can help to provide you expert insight into your business values, assets and stock prices in the future. In addition to that, the proper evaluation will leave your family out of the tangles of the business selling process.
  3. As a business owner, each medical professional has the right to make their buy-sell agreement as simple or as complicated as they wish. A physician can have complete control over the drafting process. If your business is somewhat intricate, with many shareholders, you may want to opt for a slightly complicated agreement that satisfies all your business needs and meets your family’s requirements.


A good financial planning company always knows how to facilitate a sale or buyback to minimize the taxes. Beam A Life is one of the most trusted and reliable financial planning companies that can always keep tax deductions in mind while developing an estate plan. Get in touch with the experts by visiting

“ We have been dealing with BeamaLife for more than ten years now. They have been great advisors to us in terms of advanced risk management. They also helped to put in place pension plan strategies for our partners. BeamaLife has always been extremely professional and very attentive to our needs. Our sincere thanks! ”

Mr. Merchant
Software Company Owner

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Regardless of the topic or question, BeamaLife has unique individuals with the right background to address my concerns. As a result, I have a much clearer understanding of how certain wealth creation strategies were the right fit for my company. I also have been able to take much higher income tax deductions for the corporation by implementing a plan set forth by Neil Jesani. They have maintained an unmatched level of professionalism during my interactions with them over the years.”

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“BeamaLife was referred to me by my CPA for my pension plan funding. I also wanted to take care of my estate tax need. Neil and his team have done a superb job of creatively funding my pension plan, acquiring most cost-effective life insurance for our estate planning need with very minimum out pocket using velocity of money principle and putting my existing investment to second use. They also help us setting up all our estate planning documents.”

Dr. Martin
New Jersey

“BeamaLife has been a great advisor to us for many, many years. They not only helped us take higher income tax deductions but, also helped us organize our investment portfolio in an efficient manner. Through this relationship, we were able to create substantial wealth with the very low out-of-pocket expense. Neil Jesani from BeamaLife is very responsive, professional and extremely knowledgeable”

Mr. Sakaria
Multiple Pharmacy Owner, New York

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