Mufti Online — Madrasah Ta'leemuddeen

What happens to a partnership after one of the partners pass away?

· 26 Rabiʻ II 1444 AH1 min readEnglish

Question

What is the ruling with regards to the share of a deceased who was in a partnership with his/her siblings, or anyone else for that matter?

1. Do the heirs of the deceased automatically become partners in the business?

2. Are the living partners under any obligation to make the heirs of the deceased, partners in the partnership?

3. Does the partnership seize on the demise of a partner? If so, what are the heirs entitled to, and how should the living partners ensure that the heirs receive their due?

Answer

If the existing partners happily consent to continue then the partnership continues. If they wish to end the partnership they have the right to do so. One partner may buy the other out. Both have equal rights. Alternatively, they could divide the partnership proportionate to their shares. It is better to have someone neutral to estimate the right values of the partnership and divide the partnership accordingly.

And Allah Ta'ala (الله تعالى) knows best.

Answered by
Mufti Ebrahim Salejee (Isipingo Beach)
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Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

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Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/33487
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