Inheritance and Gift Rules
A generational change usually involves certain gift elements. Questions arise in relation to the division of the older generation's assets subsequent to or during the generational change.
It is important to ensure that the planning of generational changes takes account of the tax implications.
At TVC Law Firm, we have specialist knowledge of both family law and law of succession as well as taxes and duties. We can therefore help ensure that the tax implications are taken into consideration in the planning of generational changes right from the outset.
In our work on generational changes, wills are an important tool. A will ensures that the division of an estate among several beneficiaries is fair and is in accordance with the owner's wishes.
Perhaps one of several beneficiaries will take over the company. There are both advantages and disadvantages to such a solution, which exacerbates the need to ensure that the will takes account of the consequences of this in the division of the inheritance. One possible solution is for those who do not take over the company to be compensated for any financial benefits received by the beneficiary who takes over the company.
A will is also an important element in ensuring that the generational change can proceed in case of the sudden death of the current owner. In this situation, it is important that the family and the company are clear about what is going to happen. Consequently, these possible outcomes should be considered when drawing up the will.
In a will, it is natural to consider whether the inheritance is to be the separate property of the beneficiaries and the advantages and disadvantages of this. Individual solutions are needed to take account of personal preferences.
