My grandfather bought my mum a business after she and my dad divorced. He had to bail her out a couple of times, and the last time, when I was about 16, he told her not to bother paying her back as the loan (about 30 000 at the time) was to be used to buy my partnership in the family business.
That was 25 years ago. I still work in the shop, and so does she, and we get on fine, it's just that I'm still not a partner! It gets more complicated.
The business is £50 000 in debt via an overdraft. This is secured on property that my mother owns.
My mother told me she didn't want to make me a partner with this level of debt in the shop, as I would be liable for it, which is fair enough, however, she's 65 now, and I'm wondering, what happens when she retires, or if she dies suddenly for example.
Would I as her heir become liable for all the debt? Would the business have to close? Would I be able to get my grandfather's payment to the business out of that given that I wasn't made a partner?
Any advice on how to sort the situation out? I'm really confused by it, and I'm at the point in my own life where I'm thinking I might reach 60 myself and have absolutely nothing to fall back on because I didn't do something about it all now.

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if the sole trader has debts and she passes on her business the debts would automatically go to you because nobody would be buying or selling the business. but, I'm not that sure if she dies that the debts would be dropped if your on the will for example, or if you would get it automatically. if you were a partner with all the debt it would be your responsbility which would have made it easier because the debt would have halfed. i think that you should find a partner for when you own it who can help you pay the debts and sort out were the debts came from in the first place before they get worse or it grows

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He is obligated to pay the debts because he is considered a general partner ( if he is on partnership, but since it's single proprietorship he's liable for all debts).
If he has a partner, the partners liability would be limited only up to his contributions or share.

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I presume your mother is the sole owner of the business.
If that is so if she closes up the bank will demand payment on the overdraft. The house will have to be sold or she has to somehow front up with the money. If she dies her estate will distribute any money or property once her debts are paid. The house may have to be sold to pay for this.
If i were you DO NOT take a stake in the business. since it is a sole trader business if you become a partner in the business you as a partner can be held liable for all the debt.
If you are asking questions like this I would highly recomend you see a solicitor if you are thinking about becoming a partner. Do it without the knowledge of your mother.
I think your mother knows it is not a viable business and without admitting it is trying to keep you out of the picture so you won't incur debts chalked up by her. Get some advice from a professional.

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If the sole trader debt and passes it on your business credit must go yourself because nobody will buy or sell business. However, I am sure that if he dies'm not the credit will be removed if, for example, your will, or if you get it automatically. A partner with you all the debts it is my responsbility halfed easy credit that it would have been used since. I can help you when you own it you who like to pay off debt and get out to be a partner in the first place before they were lost or did the debt grows.

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