Question
We are 4 partners in a business. One partner has died. Do his heirs assume his partnership share? Do they become partners in the business. What should be done when a partner dies?
Answer
The partnership in respect of the deceased partner has terminated. You were supposed to have assessed the financial state of the business the very day he had died. His share of the assets was supposed to have been immediately paid to his heirs.
The heirs do not become partners automatically. They cannot demand to be accepted as partners. If the existing partners agree to accept them, then a fresh agreement should be contracted with them.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 27 No 04
- PDF page
- 5
Appears under Questions and Answers (approximate).