R. Shawn McBride recently spoke on a series about updating your buy/sell, part two. Click to view the transcript:
Good morning, folks, R. Shawn McBride with you here talking about updating your buy-sell. Now, this is part two of a series. We’ll dealing all week with updating your buy-sell, both why we need to do it and how we’re going to do it, so let’s dive into it a little bit. So, yesterday we talked generally about the fact that most buy-sells, at least in my experience, doesn’t fit the situation, right. People do not get the right buy-sell in place. It’s out of date, it just didn’t fit from the beginning, or it had some other issues. So, now we’re going to move forward. We’re going to look at some deeper issues. Now, if you’ve missed the first video, go ahead and grab that on the R. Shawn McBride public page on Facebook. Just search for R. Shawn McBride on pages. You should find it. It’ll have a picture of me with some logos including Tedx, or you can go to my YouTube channel, or www.mcbrideforbusiness. Either way, you’ll want to get up to speed on that.
Now, moving forward, so now we’ve figured out that our buy-sell agreements might need updating. So this week, I’m going to send a series of videos going through, kind of, how to update it. We’re going to deal with some things that we need to deal with.
One thing we need to deal with is possibility of death. Right? We have buy-sells for a variety of reasons. Buy-sells may be there if we get into a disagreement. They may be there if other events happen outside offers for our company, but one realistic thing we need to deal with is what if one of the partners dies? What happens if somebody’s not there? And we need to have plans in place to figure out what that looks like. Court’s probably going to treat that ownership interest in that partnership, whether it be an LLC corporation or limited partnership or other entity. They’re going to treat it like an asset. So they’re going to say, “Where’s this going?” And they’re going to look at the Will, and they’re gonna look at the intestacy laws, depending on what’s going on, and that ownership interest is going somewhere, probably to a spouse, maybe to a child, right? So, we want to understand where it’s going. We want to understand how that works in the partnership. And if we don’t like where it’s going, under those estate plans, then we need to get alternate plans in place. So we need to really be working on that. So, we first want to understand where things are.
We want to understand where they’re going, and we want to understand what that looks like. And if we don’t like what it looks like, in the event of somebody’s death, then we want to build alternate plans. Tomorrow, we’re going to start talking about what some of those alternate plans are in the event somebody dies. So make sure you tune in, like the page, follow the YouTube channel. We have more content coming for you, where we’re dealing more in-depth with how to update these buy-sell agreements. And, of course, if you need to talk to me personally, feel free to reach out. If you have specific questions, let me know. Would love to chat with you. Let your friends know we’re doing this because this is very valuable for business owners. A lot of people are missing this issue, so think about friends you have that are in business and share this message with them because I’d love to help them. And I’d love to help you, either personally or with an audience. So, if there’s some way I can help you, reach out, let me know how. You can find me through the R. Shawn McBride public Facebook page, www.mcbrideforbusiness and of course we’re constantly blogging about these issues, so, if you want to constantly get some updates, you want to think more about these issues in-depth, check out our blog. Looking forward to talking to you again soon and getting you some more content in this area.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Kent Squires.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at firstname.lastname@example.org or (214) 418-0258.
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