Changes in Partnership
Usually when a business partner dies, a business partnership is considered legally dissolved. If more than two people are business partners though, the partnership can continue despite the death of one of the partners. Every business partnership should have a partnership agreement which specifically addresses the process and rights of each partner in the event a partner passes away.
Business Partnership Agreements
A partnership agreement may state a price or percentage of the business to which the estate of the deceased partner is entitled. Most agreements award the estate that part of the business to which that partner would be entitled if he were alive. Whether a business is dissolved or buys out the beneficiaries, a closing account must be given to the estate by the surviving partner so the estate can clearly see the business assets and liabilities.
Get Legal Help
Experienced Estate Administration Attorney Elga Goodman can give you invaluable insight into setting up your business documents to ensure a smooth transition for your estate. Contact us today at 973-841-5111.