I understand the various tax consequences of different ways
to pay a withdrawal. However, I am curious how the
following example should be handled.

Let's say a partner has decided to withdraw from the club
and the partnership agreement is clear that remaining
partners have the option to decide how the withdrawal is to
be handled (i.e., transfer of stock, sale of stock, cash or
combination). If the partners decide transfer of stock will
be at least part of the equation and the withdrawing partner
does not have a broker account, what are the options? Does
the withdrawing member have to open a broker account or does
the partnership have to abandon stock transfer as part of
their decision in making payment to the withdrawing member?

Pam

It has been our experience that if the member does not have
and/or will not open an account, stock certificates will be
issued. The method is not up to the member to override the
agreement. (Have not had a problem with a living member,
but heirs to estates have sometimes in the past been
uncooperative.)