Question
What happens when a partner in a business dies? Do his heirs become the partners in his place?
Answer
When a partner dies, the partnership with him automatically ends. It is then incumbent on the other partners to assess the financial status of the business, calculate the amount owing to the deceased and pay it to his heirs. The heirs do not automatically become partners. If they wish to be partners and if the existing partners agree, then a new partnership agreement should be concluded.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 26 No 07
- PDF page
- 12