Commentary

I6.232 Death of partner or dissolution of partnership

IHT, trusts and estates

I6.232 Death of partner or dissolution of partnership

I6.232 Death of partner or dissolution of partnership

Death of partner and IHT

A partner who dies in service will, like any other person, be deemed to have made a transfer of value immediately before his death of an amount equal to the value of the whole of his estate at that time1 — see I4.101 and I4.111. If, therefore, his partnership share continues to form part of his estate at the relevant time, the value of that share must be brought into his estate chargeable to IHT. If that share is unfettered by any option or accruer arrangement its full value will have to be brought into account — see I6.212. Under the Partnership Act 1890, s 44 the deceased partner's estate would be entitled to his share on a dissolution of the partnership.

If, however, the surviving partners have an option to acquire the deceased partner's share, the

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