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Partnership Protection

In a partnership, partners work together to pool resources and talent to create a business, but each partner's share of the partnership remains their own.

When a partner dies, the other partners have no automatic share or claim on the deceased partner's business assets. The remaining partners will want to keep the business running whilst dependants of the deceased partner will want to receive fair payment if they were to relinquish the share of the business which has passed to them.

Partnership assurance allows partners to make financial provisions for the death or serious illness of a partner. This means that:

  • An agreed price is paid for the deceased/ seriously ill partner's share of the business
  • Control of the business stays with the partners
  • Quick payment is made to the relatives of the deceased
  • Eexpensive loans can be avoided
  • Confidence of customers, suppliers and employees is retained
  • The ability to invite new partners into the business remains

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