[Mortuary Blues] Jack and Bianca had a partnership running a mortuary. Bianca died, and after her death, Jack decided to shut down the mortuary. Jack incurred some expenses in closing the business affairs of the mortuary. He sought compensation for those expenses but Gus, the executor of Bianca's estate, objected. Gus also claimed that Jack had no rights in Bianca's share of the partnership property and that Gus, the executor, had the right to confiscate her share of the property and sell it at auction. Jack, however, took the position that all interests of Bianca passed to Jack and that Jack owed her estate nothing. The articles of partnership did not address death.
-Is Jack correct that he owed Bianca's estate nothing?
A) Yes, because all rights passed to him at the time of her death.
B) He is correct only if Bianca's will was silent on the matter.
C) He is correct only if he, not Bianca, was the managing partner.
D) No, he is incorrect because he had a duty to account to Bianca's estate for the value of Bianca's interest in specific property.
E) No, he is incorrect because he had a duty to give the executor half the caskets, etc. on hand when Bianca died as well as half of all accounts due.

Question

Quizplus · Accepted Answer

In the absence of a partnership agreement specifying what happens upon the death of a partner, the surviving partner(s) generally have a duty to liquidate the partnership assets and settle the partnership's debts. After these obligations are met, the remaining assets should be distributed according to the partnership shares. Therefore, Jack would have a duty to account to Bianca's estate for the value of her interest in the partnership, including any specific property, rather than claiming all interests pass to him automatically.

[Mortuary Blues] Jack and Bianca Had a Partnership Running a Mortuary