Buy-sell Agreement Funding in Florida for Seamless Business Succession

Ensure a Smooth Transition – Buy-Sell Agreements

Clarity in contracts, cash at the moment of need.

A buy-sell agreement sets the rules for what happens if an owner dies, becomes disabled, retires, or exits. Funding that agreement with life (and disability) insurance ensures the surviving owners have immediate capital to purchase the departing owner’s interest—without draining working cash or borrowing at the worst time. Complete Trust Insurance coordinates coverage for closely held companies across Vero Beach, Sebastian, and Fort Pierce as part of comprehensive life & financial insurance planning and your broader commercial insurance strategy.

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Why Funding Matters

Without Funding, Agreements Can Stall.

If an owner passes away, their family may inherit shares but not the desire—or ability—to run the company. Surviving owners may be forced to seek expensive financing or accept an unfavorable deal. With properly structured insurance, the proceeds provide liquidity to execute the contract at the agreed valuation, compensate the family fairly, and keep the business on track.

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How It Works

Match Policy Design to Your Agreement.

  • Cross-purchase: each owner is beneficiary on policies covering the others
  • Entity purchase: the company owns policies on each owner and redeems shares
  • Hybrid structures: used for tax or administrative efficiency


We’ll align face amounts with your valuation method, set ownership/beneficiary designations, and discuss disability buy-out coverage for non-death triggers. If management continuity is also a concern, pair this plan with key person insurance for operational stability.

Our Role with Your Advisors

Insurance That Fits the Legal Document—Not the Other Way Around.

We collaborate with your attorney and CPA to confirm definitions (triggering events, valuation approach, timelines) and ensure policy ownership, tax treatment, and premium structures support the agreement. From certificates to collateral assignments, we handle the paperwork so you can keep running the business.

Florida-Focused Guidance

Local Lenders, Local Realities.

Treasure Coast banks and investors expect funded succession. We’ll review limits as revenues grow and adapt coverage when ownership percentages change—so your plan stays current from Royal Palm Pointe to US-1.

Frequently Asked Questions

Buy-sell Funding Questions From Florida Owners.

  • What’s the difference between cross-purchase and entity purchase?

    Cross-purchase has owners hold policies on one another; entity purchase has the company own policies and redeem shares. Each has tax and administrative trade-offs.

  • How do we choose coverage amounts?

    Tie face amounts to your valuation method (book, multiple, or appraisal). We’ll coordinate with your CPA/attorney to track changing values.

  • Are premiums deductible and are proceeds taxable?

    Premiums are typically not deductible; death benefits are generally income-tax free. Confirm specifics with your tax advisor.

  • What triggers can we include beyond death?

    Common triggers: permanent disability, retirement, divorce, or loss of license. Disability buy-out coverage can fund non-death events.

  • What if ownership changes?

    Policies and beneficiaries should be updated whenever ownership percentages or partners change. We’ll help keep documents and coverage in sync.

  • Can we use permanent insurance for long-term agreements?

    Yes. Permanent policies can lock in insurability and build value for long-horizon partnerships; term can be layered for cost efficiency.

  • How often should we review the plan?

    At least annually—or after major events like acquisitions, new debt, or valuation changes—to ensure limits and terms still fit your business.