Whitehouse & Company CPA's
How Cross Purchase Plans Work

Illustration 1 of 3

The owners of the business enter into an agreement among themselves. The agreement requires that, at the death of an owner, his or her share of the business will be sold to the other owner(s).

Spacer Business Spacer
Spacer Business Graphic Spacer
Spacer Owner X Spacer Owner Y Spacer
Spacer Owner X Graphic Agreement/Two-ended Arrow Owner Y Graphic Spacer

Prepared by Broadridge Investor Communication Solutions, Inc, Copyright 2011