Death of a partner

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This discussion addresses the implications of a partner's death on a business. It clarifies that the deceased partner's capital should be distributed according to their will, without needing explicit mention in the partnership deed. The focus for the updated deed should be on the continuing partners, their new profit-sharing ratios, and the formal process of amending the deed with proof of death.

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(Querist)
17 August 2020 There are 6 partners (Mom - Dad - 4 Children) (20%-20%-(15*4)%). Dad died and profit-sharing ratios now will be (Mom - 4Children) (20% - (20*4)%). i.e, 20% each. What will be the treatment of the capital of Dad if it is inherited to all the 4 children equally? And what will be the points in the highlight in amended partnership deed?
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CA Raj Doshi

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CA Raj Doshi (Expert)
18 August 2020 Capital shall be divided as per will. No need to mention in deed. Mention continuing partners and their share.
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Arpit Shah

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Arpit Shah (Expert)
18 August 2020 u can make a new deed and share new ratio with proof death certificate and continue firm
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