Death or Incapacity of a Partner
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Death or Incapacity of a Partner Concerning the death of a partner, our club's Partnership Agreement states that "payment shall be made when a proper demand accompanied by the appropriate legal authorization is received by the partnership." However, no one seems to know just what the proper demands or appropriate legal authorizations are. Can anyone help? Carol River City Investment Club Roseville, CA Hi Carol, In the recommended club partnership agreement, the death of a partner is treated as a "Request for Withdrawal". Once a club becomes aware it has occurred, they follow the same steps to value the members account and transfer club assets as they do for any other members withdrawal. It is recommended that any checks be made out to the estate of the deceased. This allows the club to stay out of any complications going on with heirs to the estate. Whomever wrote the wording for your agreement would know what they were considering "proper demands" and "appropriate legal authorizations". The fact that it is not clear means that it is probably in your best interests to amend your agreement and clarify things. You are asking a very good question. Any club which has wording in their club agreement which they do not understand should question it. Laurie Frederiksen www.bivio.com Follow us on twitter! www.twitter.com/bivio A written request from the executor of the estate accompanied by a copy of the Letters Testamentary (or equivalent) which appoint that person as the executor of the estate.
Ira Smilovitz
Join me at InvestEd 2010 Investor Education at Its BestTM
Baltimore, MD August 6 - 8, 2010 http://www.investor-education2010.org/ In a message dated 07/12/10 01:14:21 Eastern Daylight Time, cboroski258@bivio.com writes:
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