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Legal heir clause in partnership deed

Arun kumar (self employed) (31 Points)

06 June 2016

Please let me know whether we can include the clause in a partnership deed that would make such person( as mentioned in the deed) eligible to be the subsequent partner in the partnership firm being the legal heir of a partner(eg spouse/ brother or any such person).

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4 Replies

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 06 June 2016

Yes sir, you can include such clause.

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Arun kumar (self employed) (31 Points)
Replied 07 June 2016

Thanks for the information sir..... so you mean to say that "Mr. X" could be mentioned as a legal heir of Mr "A" and become a partner in case of death of Mr."A" in a partnership deed of "ABC Firm" ....This will not effect the legality of the Partnership firm even after the death of Mr A and the firm can continue to function with Mr. X in place of Mr A with the same old partnership deed.....Right??.....please gothrough this and get back to me..... - rgds Arun

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 07 June 2016

Yes sir, pls do mention in deed that his share of profit will be in the same proportion and he need not bring any fresh capital contribution to the firm.