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Do the heirs of a deceased partner automatically become partners in the business?

Answered according to Hanafi Fiqh by TheMufti.com

Q. There a few partner’s in a business. One of the partners passed away. Do the heirs of the deceased partner automatically become partners in the business?


A. The partnership of a partner in a business terminates upon death. The heirs of a partner do not automatically become partners in the business. The heirs become co-owners in the assets of the estate and are entitled to a distribution of the assets in the estate.

However, the heirs may discuss an option of continuing the partnership with the existing partners, which will be subject to the terms and conditions of the new partnership or a pay-out of the assets in the estate. (Shaami 4/327)

Allah Ta’ala Knows Best

Mufti Ismaeel Bassa

This answer was collected from TheMufti.com, which is a fatwa portal managed by Mufti Ismaeel Bassa from South Africa.

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