In order to guarantee a buyer for the interest in a business (particularly a minority interest which may be of very little value to one's heirs), consideration should be given to a lifetime agreement among the business owners as to how to dispose of the business.
Under an entity plan the corporation (or partnership) buys the interest of the deceased business owner. This type of arrangement is often used when there are several owners
Under this arrangement each surviving owner agrees to buy the interest of any deceased business owner.
An attorney should be consulted in deciding which plan is better.
Advantages of Buy-Sell Agreements