Q&As

What practical steps can be taken to prevent the business bank account being frozen on the death of a sole trader or partner where the partnership is then dissolved as a result of the death? Are there any practical steps that can be taken during the business person's lifetime or on their death by their PRs? It may be possible to obtain an emergency grant, but we would be keen to know if anything can be done to prevent the problem in the first place.

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Published on: 08 August 2022
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Partnerships/sole traders

A partnership is usually the relationship which subsists between 'persons carrying on a business in common with a view to profit' (section 1 of the Partnership Act 1890 (PA 1890)). A partnership is dissolved by death, subject to any contrary agreement, see PA 1890, s 33.

For a Partnership Agreement that sets out terms to enable the partnership to continue following the death of a partner, see Precedent: Partnership agreement.

See generally Practice Note: The nature of a general partnership and its legal framework.

A sole trader is an unincorporated

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