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  • Writer's pictureTeresa Lee

Business shares can fund your loved ones?

Updated: Jul 11, 2023


For an entrepreneur and key person running an entrepreneurship or business, one of the main concern would be ''What if something happens to me?''

If you have business associates to assist you, it would be a good idea to have a buy-out arrangement in place.


Buy-Sell Trust is to protect your loved ones, without being stressful for handling unfamiliar or complicated business issues. Instead, they may receive the proceeds while you ensure the smooth transition of business at a mutually agreed price to your appointed buyers in the event that any of the following take place:


i) Death

ii) Critical Illness

iii) Total Permanent Disability (TPD)

iv) Mental Incapacity

v) Retirement


Benefits of Buy-Sell Trust


1) Fair Value

You determine the selling price for your shares that is mutually agreed with your partners, so your beneficiaries will receive a fair proceeds.


2) Smooth Transition

Your business can carry on without issue as your Buy-Sell Trust prevents inexperienced individual from getting involved. You are assured that we will carry out our Trustee duties according to your expressed wishes.


3) Life Insurance

Sign up a life insurance policy is a preventive measure to ensure the buyer(s) of your shares always have sufficient funds for the mutually agreed terms.


4) Impartiality

It is essential to understand that we are completely impartial and professional in carrying out our duties, safeguarding the interests of your beneficiaries and partners at all times.


5) Liquidity

Cash flow is crucial to sustain the desired lifestyle of your beneficiaries. Buy-Sell Trust ensures that your business shares are easily converted into cash, with timely payments to your loved ones according to your written instruction.


How to set up Buy-Sell Trust





Draft the Buy-Sell Agreement that covers

- the events that will trigger sale

- the agreed value for the sale of shares

- payment methodology of the purchase







Establish a Power of Attorney to appoint a qualified individual/organization (ex. Rockwills) as your attorney/Trustee to facilitate the sale of your shares in the future.








Specify within your Trust Deed how you want the proceeds of your shares to be distributed to your beneficiaries.

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