“Help us to stay online by your kind donation.
Every penny will help.”
Purchase by Partnership of Deceased Partner's Interest
(Life Insurance Proceeds)
The partnership (Partnership) shall acquire life insurance
policies on the lives of each of the Partners. The face amount
of such policies shall be within the Partner's discretion, but
shall be not less than each Partner's interest in Partnership (as
measured by Partnership's capital accounts) [or, calculated by
a good faith estimate of such deceased Partner's entitlement to
payment on death, as stipulated in Paragraph ........ [see,
e.g., Paragraph 17, Form 9.1.01]]. Partnership shall be the
beneficiary of such policies.
The insurance proceeds paid to Partnership shall be used to
purchase the deceased Partner's interest in Partnership. Payment
to the decreased Partner's estate is to be made within [number]
days of receipt of the insurance proceeds by Partnership. Any
excess insurance proceeds shall be added to the capital accounts
of the surviving Partners. However, if the surviving Partners
elect to liquidate Partnership upon the death of one of the
Partners [e.g., as provided in Form 9.1.01 Paragraph 18], then
the excess proceeds of any life insurance policies shall be
included among the assets of Partnership.