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

Nasihah (Advice): The greatest of sins

Sayyiduna Abu Bakrah Radhiyallahu Anhu says that Nabi Sallallahu Alayhi Wasallam said, “Shall I not inform you of the biggest of the major sins?” They said, “Yes, O Rasulullah (Sallallahu Alayhi Wasallam)!” He said, “To associate partners in worship with Allah, and to be undutiful to one’s parents.” (Bukhari)

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Question and Answer:

1. 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?

(Question published as received)

1. 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 are entitled only to a pay-out of their shares in the business.

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. (Shaami 4/327)

And Allah Ta’ala Knows Best

Mufti Ismaeel Bassa

Confirmation:

Mufti Ebrahim Desai

Fatwa Department
Jamiatul Ulama (KZN) 
Council of Muslim Theologians
223 Alpine Road, Overport

Durban, South Africa
Tel : +27 (0) 31 2077099

Email: fatwa@jamiat.org.za
Fax : +27(0) 31 2074163
Website : www.jamiat.org.za