Fatwa ID: 08256

Answered by: Maulana Sheik Abdel Ahaad Imrit

Question:

If two people are partners in a business and one partner passes away, will the heirs of the deceased have the right to continue with the partnership? Or can the living partner demand that he pays the heirs of the deceased out? Alternatively, can he demand that the partnership be dissolved?

If the heirs want to continue with the partnership, are they allowed to continue with the partnership?

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

Wa ʿalaykumu s-salam waRahmatullahi Wabarakatuh,

If any one of the partners dies during the currency of musharakah, the contract of musharakah with him stands terminated.

His heirs in this case, will have the option either to draw the share of the deceased from the business, or to continue with the contract of musharakah[1]

Only Allah (عز و جل) knows best.

Written by Mawlana Sheik Abdel Ahaad Imrit

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

[1] Ibn Qudamah, Al-Mughni, 5:133–34. An Introduction To Islamic Finance Mufti Taqi Uthmani