2007-12-23 03:56:16 · 21 answers · asked by saw_2 2 in Politics & Government ➔ Law & Ethics
No, of course not. The dead owner's share of the business will be part of his estate and disposed of as directed in his Last Will and Testament. Many partners in a business will have life insurance on each other so that the surviving partner can buy out the family of the dead partner with the insurance proceeds.
2007-12-23 03:59:19 · answer #1 · answered by Yak Rider 7 · 3⤊ 0⤋
It depends on your written partnership agreement. All of this should be decided when you enter into the partnership and must be put in writing and signed and notarized by both partners.
If you don't have a written agreement and your partner has died, then her share will end up being part of her estate, after all half the business is an asset and worth money, correct?
An easy way through this if both partners are still alive is to take out life insurance policies on each partner with the proceeds to go to the deceased partner's relatives and the business to wholly go to the surviving partner. Your partnership agreement must have these wishes spelled out in writing! Make sure the insurance policy proceeds are roughly equivalent to the perceived value of the business. The business can pay for the policies.
2007-12-23 04:14:15 · answer #2 · answered by Dan H 7 · 0⤊ 0⤋
Under English law it depends on the partnership agreement which is a document setting out what happens in various eventualities, including death.
Accounts have to be taken as at the date of death, and all the partnership assets valued (including work in progress if there are intangible assets) and set against the debts. Effectively the partnership comes to an end on death.
Unless the partnership agreement states otherwise, the deceased partner's assets pass under his or her will or, if none, under the law relating to intestacy. Thus the business assets do not normally pass to the other business partner(s), but to the heirs of the deceased partner.
2007-12-23 04:07:14 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Partnership has legal meaning. It means a partnership between two people who would otherwise be sole-proprietor with personal liability. If by partnership, you really mean two ownership of an LLC or corp, then it is an entirely different case.
So assuming the form of business is a "true" partnership, generally, no, you do not just get the whole business just because someone has died. The ownership interest is part of his estate that can be bequested away or sold. It belongs to his estate and you will have to buy him out as if he is still alive, or his heir will inherit it, or that company may dissolve by being sold, and you are free to start your own business afterward.
2007-12-23 06:17:21 · answer #4 · answered by Andy 4 · 0⤊ 0⤋
When the Partnership was constructed, this would have been addressed in the legal documentation establishing it. It is more likely that that part of the business partnership that belonged to the now-deceased party would pass to his/heirs, as determined by their Will or by Probate.
2007-12-23 04:01:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Ok. The technical answer is, NO, unless he doesn't have any "immediate" family. It really depends on his will and what he does. He can bequeath his ownership to his wife. Now, you would then have to buy her out. I'd be doing my homework real fast if this is the case or you will have a partner that may not be as receptive to you as your original partner was. You needed to set up BEFORE this, a succession plan. If one dies, what happens.
2007-12-23 04:01:08 · answer #6 · answered by Mr. Cellophane 6 · 0⤊ 0⤋
It would depend on what was written in the partnership agreement. If there was no written agreement, the surviving partner may find himself in partnership with the decedent's heirs.
2007-12-23 04:49:10 · answer #7 · answered by Mark 7 · 0⤊ 0⤋
It depends on how the partnership was set up. One partner may have left his/her share to a spouse.
2007-12-23 03:59:55 · answer #8 · answered by la buena bruja 7 · 1⤊ 0⤋
If th deceased partner has made a will and has left his half to a relative, then that is legally binding. But if there is no will, his assets will go to probate, and the executor of the will will have control, once al debts etc have been paid out, the remainder goes to the beneficiary.
2007-12-23 06:32:15 · answer #9 · answered by daria 3 · 0⤊ 0⤋
No, unless the partnership agreement states that that is the case. Otherwise the deceased partner's interest will go to his heirs.
2007-12-23 03:59:20 · answer #10 · answered by golfer7 5 · 1⤊ 0⤋