Pension proposal

We act for a trading company with three shareholders of various ages. There is a more or less standard cross-option agreement for the transfer of shares to the survivors on the death of any one of them and it is insured.

n other words the insurance policy will pay the survivors enough to buy the shareholding of the deceased one.

At least that was the case originally but now the value of the company has far outstripped anything that could be insured for. The premiums payable would just be prohibitive.

So to give the widow a reasonable sum we are considering an agreement between the existing shareholders to pay in addition a pension for life to that widow.

This would begin when the widowhood began. The existing insured sum would be used to buy the shareholding as originally planned.

We would be interested to have...