Document background
The Buy Sell Life Insurance Agreement is a crucial document for businesses operating in the Netherlands seeking to establish a clear succession plan in the event of an owner's death. This agreement is particularly relevant for partnerships, private limited companies (BVs), and closely-held businesses where the smooth transition of ownership is essential for business continuity. The document integrates Dutch insurance law requirements with business succession planning, ensuring compliance with the Dutch Civil Code, Financial Supervision Act, and relevant tax regulations. It specifies how life insurance policies will fund the purchase of a deceased owner's business interest, including detailed valuation methods, transfer procedures, and tax considerations. The agreement is typically used when business owners want to ensure their interests are properly valued and transferred, while providing their heirs with fair compensation and protecting the business's ongoing operations.
