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A four-person hand, say Alice (Button), Bob (SB), Carol (BB) and David, ends with Bob and Carol eliminated. Who will have the button in the next hand and how blinds will be posted among Alice and David?

The same question when any other pair is eliminated, i.e. how to deal the next hand in all 6 possible situations?

It seems either the Dead Button or Moving Button rule will give reasonable guidance in some cases (e.g. for Alice+Bob elimination), for other cases both rules will result in very strange subsequent hands and will contradict the SB+Button vs. BB rule customary for heads-up.

Or should I just move BB to the next closest person remaining and assign the button and SB to the other?

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General dead-button or forward-moving-button rules apply when three or more players remain. When you get down to two players, whoever most recently paid the big blind posts the small blind, the other player posts the big blind, and the button is moved under the small blind.

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