Legal Question in Business Law in New Jersey

business partnership

in a business partnership, the partnership being two people, who incorporated themselves as a business, what happens when one partner becomes deceased. Does the surviving partner have to formally end that corporation, cease using the business name, close all existing bank accounts only used for the business with the business name, etc. and if in fact continues as is, as if the other partner did not pass away, is that considered fraud?


Asked on 1/19/03, 10:49 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: business partnership

I presume there was no formal agreement between the parties as to what happens under these circmstances. Having no formal agreement could complicate the matter. Is it a true corporation or a true partnership? In either case you have to deal with the estate of the deceased person, as his interest in the entity continues as part of his estate. The entity continues in any event, but may have ramifications when the interest is terminated. A corporation can continue with one stockholder, but a partnership may be terminated since there is only one remaining person. I need more facts to properly advise you. Contact me directly as [email protected]

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Answered on 1/20/03, 11:34 am


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