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My client entered into a life assurance policy in 1992 which would pay out let’s say £1m on his death. His two partners have also entered into similar policies.
The proceeds of my client’s policy will be held by the trustees (my client and his wife and daughter) for his two partners who are alive on the payment date.
The sum would then be used to buy my client’s one-third share of the partnership.
The life assurance policy also mentions that if he shall cease to carry on the business in partnership then his partners’ interest will cease and the policy will be held for himself absolutely.
In the partnership agreement an option has been granted to the surviving partners to buy the shares of the deceased partner at market value.
I am seeking guidance on the following:
- If my client’s partnership...
