# Plan ahead for business shares after a partner dies

> Without a buy-and-sell agreement, a spouse may inherit business shares they cannot sell or manage.
- Title: Plan ahead for business shares after a partner dies | Shortify
- Summary: Without a buy-and-sell agreement, a spouse may inherit business shares they cannot sell or manage. Business owners should set up buy-and-sell agreements with…
- Keywords: estate planning, business partnership, buy-and-sell agreement, life insurance, shareholder succession, personal finance, news, politics, Plan, ahead, business, shares
- Source: Daily Maverick — https://dailymaverick.co.za/article/2026-10-09-estate-planning
- Author: Kenny Meiring
- Published: 2026-10-09T05:01:31+00:00
- Read time: 1 min
- Topics: estate planning, business partnership, buy-and-sell agreement, life insurance, shareholder succession, personal finance, news, politics
## What happens to business shares
When a business owner dies, their spouse does not necessarily inherit the shares. What happens depends on the owner's will and agreements governing the business.
## The problem with inherited shares
A business interest worth several million rand on paper may have only one realistic buyer: the remaining shareholders. A spouse with no involvement in the business may struggle to sell.
## A concrete example
A husband owns one-third of a fifteen million rand business worth about five million rand. His widow may inherit a five million rand asset she cannot easily sell or manage.
## The buy-and-sell agreement
A buy-and-sell agreement sets out what happens to business interests when a shareholder dies. It can require surviving shareholders to buy the deceased shareholder's interest at a fair price.
## Life insurance funds the purchase
Surviving shareholders need cash to buy the deceased partner's shares. Life insurance policies on the deceased owner provide the funds needed to complete the purchase.
## Keep valuations current
A business worth six million rand ten years ago with two million rand life cover per shareholder may now be worth fifteen million rand. Valuations and insurance must be reviewed regularly.
## Act while everyone is healthy
Buy-and-sell arrangements need proper legal and tax structuring. Partners should set them up while all owners are alive and healthy, with spouses understanding the arrangement.
## Key takeaway

Business owners should set up buy-and-sell agreements with life insurance to ensure spouses receive fair value for shares if a partner dies.