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+--- Thread: What's the best plan for multi-ownership? (/showthread.php?tid=5403)
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RE: What's the best plan for multi-ownership? - mikewj - 03-29-2009
Maybe you should think about setting up as a business to own the properties, then obtain buy-sell insurance on the principals. That way upon each partner's death, insurance will buy out that share and pay the proceeds to the other partners. No risk of being a co-owner with the drunk brother-in-law or other horrifying scenarios!
"If I die, you buy. If you die, I buy." Buy/sell insurance is one of the best ways to assure the continuation of your business in the event of a partner's death. Many businesses get buy sell insurance as a form of business protection or business insurance. This buy-sell business insurance is generally accompanied by a buy/sell agreement that requires any surviving partner(s) to purchase the remainder of the business in the event of a partner's death. The purchase is funded by the death benefit of the buy/sell insurance policy.
This process, originally without the insurance but with the deceased's shares passing to the other partners, until finally only one was left, was called a 'Tontine'. (Great old Brit movie about one such, called 'The Wrong Box'.) Available on Netflix.