The agreement can set a value on your interests and, life insurance funding can allow your partners to purchase your share with discounted dollars. When a partner in a firm dies, the disposition of his or her business interest can create problems for the partners' heirs, as well as the firm itself. Without proper planning, conflicts can arise. Remaining partners own the business free and clear with no concern over future outlays or debt acquisition.
Funding is established with discounted dollars.
Peace of mind to heirs that the money will be there when they need it most.