What is the main difference between a partnership and an S corporation specifically with regard to the death of an owner?

In a partnership, the estate must liquidate its interest in the partnership within one year of the date of death. In an S corporation, the estate assumes the role of the deceased owner.

In an S corporation, the estate must liquidate its interest in the corporation within one year of the date of death. In a partnership, the estate assumes the role of the deceased owner. In a partnership, the heirs receive a step-up in basis of all the partnership assets.

In an S corporation, the heirs receive a step-up of basis in the shares of the corporation.

In an S corporation, the heirs receive a step-up in basis of all the corporation's assets. In a partnership, the heirs receive a step-up of basis in the partnership interest.