In the interests of financial security, business stability and continuity, it is essential for partnerships to provide a safety net following the death of a partner. There should also be a partnership agreement in place that specifies that the partnership should continue the death of a partner. If this is not in place, on the death of a partner, the partnership is automatically dissolved.
Partnership Protection is usually put in place to ensure that, on the death of a partner, their share of the partnership is available for the other partners to buy and that there is enough cash available to buy the share.
