If my business partner dies, does his stake in the partnership still exist?

[Kross]

If I am partnering with someone to run a business, and along the way, that my business partner dies, does his stake in the business still exist?

Can his family take over his own share of the ownership of the business? What does the law say here?

 

[Suba]

If a business partner dies (the partnership can be dissolved), unless there is a prior agreement in the partnership that the heirs are willing to continue the agreement. Of course, their ownership in the business still exists and can be taken by their heirs. However, there are other clauses regarding whether they are an active, complementary partner or merely a passive/limited partner.