KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Death or incapacity and broker agreement October 2, 2026 *************************** Death or incapacity and broker agreement *************************** Ken, A client raised an interesting question. If they are engaged with a broker to sell their business and something happens to their health (where they are either incapacitated or pass away during that process), is there any document or paperwork that they should have on file (vis-à-vis a power of attorney or something) that would continue that relationship with the company to sell the business for his estate? Robert Few Managing Partner – The Connection Xchange (201) 838-0091 robert.few@tcx.email www.theconnectionxchange.com ************************* Response ************************* A power of attorney[POA] will not survive the death of the grantor. A ’run of the mill” POA will not survive the incapacity of the grantor. A properly drafted Durable POA will survive an incapacity of the grantor, but will not survive grantor’s death. Upon a person’s death an estate representative must be appointed by the Court. If there is a Last Will and Testament naming an Executor or Estate Representative [same called with different titles in different states] then the estate representative will have authority to continue the contract. What I think you are curious about is this, death does not terminate the broker agreement, or any agreement, unless the agreement itself provides for such termination. If the broker agreement does not provide for such termination then the estate representative would step into the shoes of the deceased alarm owner and take over the broker contract. The sale of the business might require Court approval unless the appointment of the estate representative permits selling assets without prior Court approval. Most people don’t think about death and are naturally reluctant to plan for its eventuality. We see this in contracts for the purchase of a house when one of the spouses dies during the contract and before closing. In the context of an alarm deal it is something that both sides might be concerned with. In fact a buyer of the alarm accounts may be more concerned with the life and health of the seller than the seller is when the buyer expects certain performance of the seller’s principal post-closing. If the key principal of the seller dies before the sale, before all that is required before and after sale can be accomplished, the deal may have reduced or no value to the buyer. A seller may have no choice but to cancel a sale if the buyer is a one man operation and dies before the closing. It’s a good idea to keep all this in mind when entering into contracts that are intended to be long term relationship, such as a broker agreement. With a broker agreement I’d suggest the seller should insist on being able to terminate at any time, just remaining liable if the broker had already introduced an interested party. When K&K acts as broker we permit termination at any time. ************************* STANDARD FORMS Alarm / Security / Fire and related Agreements. click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
