I own two small holding properties in Gordons Bay.
The first property of which I own 100% has a swimming pool, from which I run a swim school with a partner. The property has a municipal valuation of about R2.5 Million
The second property I own 50% of with the above partner. The property has a municipal valuation of about R2.1 Million. I paid for the complete property.
The swim school is a sole proprietor in the above partner’s name.
The partner and I were romantically involved, but are now just business partners in the swim school.
I live on the first property and she lives on the second.
I would like to have an agreement with her that in the event of my death that she purchases the first property from me (and possibly the second as well). The best way to fund this purchase would be for the sole proprietor swim school to take a life insurance policy out on my life to purchase the property from my estate. I am 60 years old.
Can you help with an understanding of whether this is practical and what type of agreement would be needed?