Partnership Assurance and Buy-and-Sell Agreements – South Africa 2026

Description

The death of a business co-owner can affect ownership, control, liquidity and the administration of the deceased owner’s estate. Partnership Assurance and Buy-and-Sell Agreements explains the South African legal and tax position in clear, factual language. This 10-page guide covers:

• What partnership assurance is and how it funds a buy-and-sell agreement
• The difference between cross-purchase and entity-purchase structures
• What can happen when no properly funded agreement is in place
• Why an insurance policy alone does not create an obligation to buy or sell
• Common methods used to value a business interest
• Why responsibility for paying the premiums affects the Estate Duty treatment
• The distinction between buy-and-sell and key-person insurance
• The CGT treatment of a business interest at death
• The documents SARS may require when considering the Estate Duty exclusions
• The principal legislation and official SARS sources

Research and rates were checked on 1 September 2026. The purchase includes one customer PDF. It does not include a legal agreement, insurance policy, personalised calculation or recommendation. Get Financial Savvy provides general educational information only. This guide does not constitute personalised financial, insurance, tax or legal advice. Legislation, SARS practice and individual circumstances may change the outcome. Readers should confirm the latest position with their own suitably qualified financial adviser, accountant, attorney or registered tax practitioner.