Partnership Dissolution Agreement | USA

Prepare a Collateral Trust Agreement Between Partners with this downloadable template for a two-person partnership.

• One partner appoints a trustee to hold a life insurance policy or policies on the life of the other partner in trust on the partner's behalf.
• Upon the death of the insured partner, the partner agrees to purchase the insured partner's interest, using the proceeds from the insurance policy ⁄ policies.
• The trustee will hold the insurance policy / policies in trust, but the partner will receive all dividends.
• The partner will pay the trustee a yearly fee for acting as trustee.
• This legal form template is fully editable and can be easily customized to meet your needs.
• This is a generic form which does not contain references to the laws of any particular country and can be used in many countries and jurisdictions.

Are you selling your interest in a business partnership, or buying out a partner's interest? This Guide to Partnership Buyouts can assist you in structuring the transaction.

• why business partners fight,
• the role partnership agreements play,
• how to avoid disputes when the partnership terminates or a partner leaves,
• a comprehensive checklist for buying out a partner.

If you're a partner, you need to get a copy of the Guide to Partnership Buyouts.

Set the terms by which an LLC will buy, develop and lease real estate property with this easy-to-use LLC Operating Agreement for Real Estate Developer.

• This 11-page agreement template establishes the formation of a multi-member limited liability company in the United States for the purpose of purchasing, developing, operating, leasing and/or selling real estate properties.
• The members are responsible for managing the business and affairs of the LLC and may appoint one or more managers to delegate that authority to.
• Provisions for admitting new members and for existing members to transfer their interest.
• Provisions for tax and accounting procedures. The LLC is treated as a partnership for U.S. federal tax purposes.
• Provisions for dissolution of the LLC, liquidation and distribution of the assets on a pro rata basis after payment of the LLC's obligations.
• This is a U.S. template which can be used in most states. Check with the Secretary of State in your area to find out what else is required.
• An LLC can be a cost-effective and efficient structure for a real estate developer.

Before you buy out your partner's interest in your business, read this 6-page checklist of issues you need to consider, such as:

• valuation and financial status of the partnership business;
• alternatives to a buy-out;
• preservation of the value of the partnership;
• setting the purchase price;
• financing;
• tax and legal issues.

Buying out a partner can be difficult and stressful. The Partnership Buyout Checklist is a handy tool to help you work through the process. Download yours today.