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This Partnership Deed assumes that some of the partners, usually the parents, own a farm (for example)and they want to continue to own the farm but enter into a partnership with their children (or some of them) to run the farm.
The key features are that the farm continues to be owned by parents and not the children, and usually the farm equipment will continue to be owned by the parents and not the children. If this is not the case, the agreement should be modified to reflect that or possibly include a clause that contemplates the children acquiring new equipment in the partnership.
The Partnership Deed also provides that the parents will not be contributors to capital (other than making the farm and equipment available). If this is not to be the case, then the agreement should be modified accordingly.
The Partnership Deed also assumes that there will be a lease by the parents of the farm to the partnership, that rent will be paid but that the parents will continue to reside on the property. The key terms of the lease should be included in the appropriate schedule. If there is to be a lease, then that document should be drawn up and executed simultaneously with this Partnership Deed. Consideration should also be given as to whether the lease should be registered. There are different requirements in each State/Territory regarding this.
The partners can be individuals, they could be family trusts or companies.
Partnerships can provide attractive tax consequences however the Partnership Acts also apply in making partners jointly liable (and in some State/Territories severally liable) for the debts and liabilities of the partnership. Partnerships are governed by Partnership Acts of each State and Territory. While those Acts are similar, there are differences. LawLive recommends you download and read the Partnership Act applicable in the State/Territory in which the partnership conducts its business.
Schedules Three to Seven are sent to you separately to complete.