Partnership Assurance and Buy-and-Sell Agreements – Guide and Preparation Workbook – South Africa 2026

Description

When a business loses a co-owner

The death of a business co-owner can affect ownership, control, cash flow and the administration of the deceased owner’s estate. The remaining owners may need money to purchase the deceased owner’s interest, while the family may need a fair and orderly way to realise its value. An insurance policy can provide funding—but the policy, ownership structure, business valuation and legal agreement must work together.

Who this guide is for

This guide is particularly relevant to:

• Partners, shareholders and members of co-owned businesses
• Family businesses with more than one owner
• Business owners reviewing an existing buy-and-sell arrangement
• Owners who have insurance cover but are unsure how it connects to their legal agreement
• People preparing questions for their accountant, attorney, tax practitioner or financial adviser

What the guide covers

The 10-page guide explains:

• What partnership assurance is and how it can fund a buy-and-sell agreement
• What may happen when no properly funded agreement is in place
• Why an insurance policy alone does not create an obligation to buy or sell
• The difference between cross-purchase and entity-purchase structures
• Common methods used to value a business interest
• Why valuations and levels of cover should be reviewed regularly
• Why an arrangement should be reconsidered when an owner joins, retires or leaves
• Why responsibility for paying the premiums can affect the Estate Duty treatment
• The distinction between buy-and-sell cover and key-person insurance
• The possible Capital Gains Tax treatment of a business interest at death
• Documents SARS may request when considering applicable Estate Duty exclusions
• Principal legislation and official SARS sources

What you will receive

• Your purchase is delivered as one ZIP download containing two customer PDFs:
  • Partnership Assurance and Buy-and-Sell Agreements – South Africa 2026: a 10-page factual guide explaining the legal, insurance, Estate Duty and Capital Gains Tax considerations
  • Buy and Sell Agreement Preparation Workbook: a 14-page workbook for recording ownership information, trigger events, valuations, funding, policy details, professional questions and annual reviews
  • 24 pages of practical South African educational material in total
  • Clear explanations and structured worksheets
  • Research and rates checked in September 2026
  • Access to the ZIP download after successful payment
  The package has been developed by Get Financial Savvy, drawing on more than four decades of financial-services experience. The workbook is a preparation tool for meetings with appropriately qualified professionals. It is not a legal agreement and is not for signature.

What is not included

The purchase does not include:

• A buy-and-sell agreement or other legal document
• An insurance policy or quotation
• A business valuation
• A personalised tax calculation
• Personal financial, insurance, tax or legal advice

Important information

Business structures, agreements, insurance policies and individual circumstances differ. Legislation and SARS practice may also change. Get Financial Savvy provides general educational information only. This guide does not constitute personalised financial, insurance, tax or legal advice. Readers should confirm the latest position and the suitability of their arrangements with appropriately qualified professional advisers.