How can partners guarantee a market for their share of the business in the event of death?

Key person insurance is a policy taken out on the life of a key employee or partner whose death could significantly impact the business. While it provides financial compensation to the business to cover losses, it does not directly facilitate the buying and selling of shares, nor does it guarantee a market for the deceased partner's ownership stake.

Split dollar insurance is a financing arrangement typically used for funding life insurance policies, where both the employer and employee share the costs and benefits. However, it does not create a mechanism to ensure that the deceased partner's shares can be sold or transferred, which is critical for guaranteeing a market for those shares.

Deferred compensation agreements involve deferring a portion of an employee's income to be paid at a later date, often used as a retirement strategy. While they can provide financial benefits, they do not address the issue of share transfer upon a partner's death and therefore do not guarantee a market for the business shares.