What happens with partnership if one partner dies
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cal
Apprentice
Joined: 17 Nov 2004
Posts: 3
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 Posted: 12/04/07 - 06:53 Post subject: |
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| I have recently been planning to start my first company. I hope it will work out all right. It will actually be a partnership. I would like to know what happens with partnership if one of the partners dies. Thanks in advance for your information, it will mean a lot to me. |
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iain
Apprentice
Joined: 13 Sep 2006
Posts: 3
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| Posted: 01/03/08 - 02:43 Post subject: |
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| Any kind of sudden leave of a partner can seriously jeopardize a business. Your partnership actually is no more, of course, and there is his part of the company you would need to finance on your own. What you need to do, is to make a buy-sell agreement. If your partner dies, you will have much easier time with such an arrangement. With it, you need to purchase life insurance policy on your partner. With these two documents, if your partner dies, you can slowly buy out his share from the money of the insurance. That way, there will be no sudden losses on your part, and the company could go on functioning as well as it did before. |
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