How would your Business Cope with the loss of a key partner?
The untimely death of a Partner in a firm can have serious financial implications for the continuing Partners. As well as the obvious upset and emotional trauma such an event causes, there are unfortunately also potential business impacts that need to be considered.
In fact, under the provisions of the Partnership Act 1890, the deceased Partner’s share of the business automatically becomes the property of their estate. It effectively becomes a debt that can be immediately called in on proof of death, unless there is a written or verbal agreement between the Partners to the contrary.
The deceased’s share would normally include his or her share of retained profits and Partnership capital
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