Will power

Craftseller - - Q&a - JOELY CARR, LU­TON

I have set up a small craft busi­ness with a friend, and I know this sounds like a mor­bid ques­tion, but in the event of one of us dy­ing, would the busi­ness part­ner au­to­mat­i­cally take over full own­er­ship? EMILY SAYS: If there are two of you in part­ner­ship, and you haven’t put a for­mal part­ner­ship agree­ment in place, then if one of you dies, the part­ner­ship will die with them. If the sur­viv­ing part­ner wants to carry on the busi­ness, that per­son will have to re-reg­is­ter with HMRC as a sole trader. I’d rec­om­mend putting a part­ner­ship agree­ment in place to deal with this and any other sce­nar­ios – for in­stance if ei­ther of you wants to leave the busi­ness, or if you want to bring in a third part­ner. Con­tact a so­lic­i­tor to draw one up for you, or down­load a part­ner­ship agree­ment tem­plate on­line for free.

Put a part­ner­ship agree­ment in place,

just in case

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