Continuing partnerships.

§ 20.59 Continuing partnerships. (a) General. If, under the laws of a particular State, a partnership is not terminated on death or insolvency of a partner, but continues until final settlement of the partnership affairs is completed, and the surviving partner has the exclusive right to the control and possession of the partnership assets for the purpose of liquidation and settlement, the surviving partner may continue to withdraw and use specially denatured spirits under the prior qualifications of the partnership. (b) Requalification. If a surviving partner acquires the business on completion of the settlement of the partnership, that partner shall qualify as a new proprietor, from the date of acquisition, under the same conditions and limitations prescribed in § 20.57(c). (c) More than one partner. The rule set forth in this section also applies if there is more than one surviving partner. [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985; T.D. ATF–476, 67 FR 17939, Apr. 12, 2002; T.D. TTB–140, 81 FR 59456, Aug. 30, 2016]