Partnerships Need a Plan for Winding Down Affairs

Author: 
Paul Goeringer

Photo by Edwin Remsberg

This post is not legal advice

Earlier, I posted on family limited partnerships, I'm continuing the theme today with what happens when a general partner passes away.  For example, father and son start a general partnership to run the farm.  This partnership will continue till the partners agree to dissolve the partnership or the death of a partner.  Similar to a sole proprietorship ending at the death of the owner, a partnership ends at the death of a partner.  But a partnership does not terminate until the partnership's business affairs are wound up (§ 9a-802).  Looking back at my example, if father passes away then the partnership dissolves, but the partnership does not end until the affairs are wound up.  A recent decision by the Court of Special Appeals of Maryland highlights the importance of winding up partnership affairs can be.

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