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Nancy, age 62, owns 75% of a highly-successful data analytics firm with revenues in excess of $18 MM annually. The remaining 25% is owned by

Nancy, age 62, owns 75% of a highly-successful data analytics firm with revenues in excess of $18 MM annually. The remaining 25% is owned by a key employee, Barbara, age 45. Nancy and Barbara are unrelated. The firm has 42 employees in addition to Nancy and Barbara. Nancy is interested in establishing an arrangement to transition the business at her retirement in 4 years to Barbara. Their financial advisor has recommended that Nancy and Barbara obtain life insurance policies to cover the redemption of stock in the event of death. Which of the following techniques would best fit this situation?

Question 16 options: Cross Purchase Agreement between Nancy and Barbara Entity

Purchase Agreement with the firm buying insurance on Nancy's life

ESOP

Rabbi Trust

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