For a partnership or a small business, dealing with the death of one of the principals is a relatively simple matter, says David Frisch. Dealing with a partner who becomes disabled is much more difficult.

The reason, says the Melville, N.Y.-based fee-only planner, is that many partnership agreements cover what will happen in the event that one of the partners dies, but fail to address the possibility of one of the principals becoming disabled. Yet statistically, according to Frisch, people between the ages of 30 and 55 have a greater probability of becoming disabled than dying. And a disability that prevents someone from working puts heavy pressure on their spouse, partner or business to replace the lost income.

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