Employers ought not to rely on the rules of intestate succession but instead prepare a will. The law firm GRP Rainer has extensive experience in business succession planning.
GRP Rainer Lawyers and Tax Advisors in Cologne, Berlin, Bonn, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart and London conclude: In the absence of a will or contract of inheritance, the rules of intestate succession kick in. This may represent a particularly high risk to employers, as it is not required under these rules that the heirs be in any way suited to run the company. This could jeopardize the continued existence of a firm. Generally speaking, the rules of intestate succession are not suited for dealing with complex processes such as business succession. For this reason, it is imperative for employers to draw up a will, particularly with a view to providing security for family members such as spouses or children.
Testamentary dispositions can be laid out in an employer will that only take effect in the event of death or alternatively during the lifetime of the testator and integrated into a long-term plan for business succession. In addition to aspects of company law, matrimonial property law and tax law, the employer will equally needs to take account of requirements under succession law such as claims to compulsory portions. By doing so, the assets can be distributed in accordance with the wishes of the testator on the one hand and the firm’s continued existence ensured on the other. If these issues are to be settled in a way that is acceptable to all of the parties involved, it is essential to obtain comprehensive interdisciplinary advice across a variety of legal fields. The law firm GRP Rainer is experienced in drafting employer wills and provides targeted solutions from a single source, having regard to the diversity of interests, which guarantee the economic security of the family as well as the continued existence of the company. Depending on the given legal form, various different rules have to be observed. Ideally, the will becomes an integral part of a long-term plan for succession.
In order to ensure that business succession is trouble free, including from the perspective of tax optimization, employers or shareholders can turn to law firms with lawyers who have experience and expertise both in the field of succession law and any other relevant fields of law.
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