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How should a partnership insure itself against an unplanned exit of a mortal kind? PENNY BATES has the answers.
MANY BUSINESSES, PARTICULARLY professional practices, operate as partnerships. Partnerships are assumed to exist where the parties actually share profits and losses proportionally, even though there may not be a written partnership agreement signed between the partners. Most advisers would advise their clients to have a written partnership agreement in place which could prevent problems arising between the partners in the future.
How should a partnership insure itself against an unplanned exit of a mortal kind? PENNY BATES has the answers.
MANY BUSINESSES PARTICULARLY professional practices operate as partnerships. Partnerships are assumed to exist where the parties actually share profits and losses proportionally even though there may not be a written partnership agreement signed between the partners. Most advisers would advise their clients to have a written partnership agreement in place which could prevent problems arising between the partners in the future.
The death of a partner can cause severe problems for the continuing partners. The main aim of this article is to evaluate what happens in the event of such a death and what protection could be available to the partners detailing the tax consequences and planning points that need to be considered.
Automatic dissolution
The death of a partner will cause an automatic dissolution of the...
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