The company’s business, family and estate planning and succession: are The benefits of this type of planning for business continuity
Business Partnerships In Brazil:
In Brazil, the companies comprising the members of the same family, and they are the majority in the market, accounting for 90% of the companies in business in the country, according to reports, a writer, and an expert in business administration from the fundação Armando Lorenzo de Almeida Junior, in his book, behind the Scenes of the Family-owned Company.
This type of company the business is able to observe the prevalence of some of the features that were derived from the relationship between the members of the family, such as the economic power is concentrated in one family; and the power to make decisions about whether the company has been in the hands of those who are part of the first generation of the family, the ‘double’ originally, all the investments that have been made in the company will be reverted to the support of his own family; and the administration of the company, is mainly formed by the members of the same household; and to all the members who are motivated to make decisions that maximize their profits, because their household income is directly tied to the performance of the company.
In this way, it is possible to understand that one of the major challenges within the framework of a company in the family is the very existence of the business. For this reason, to develop a well-structured succession of the company, it is extremely important to us that this is a challenge to be overcome.
In this regard, it is necessary to look for ways to organise and protect the assets that are part of the heritage family, and the world of business, in order that the personal property is not to be confused with the goods, business, and vice-versa, and this is a subject that should be the thought of every home, which has set up his own business, and you want to perpetuá it. However, this protection can be seen as a ‘shield sheet.
Therefore, it is important to point out that the asset and succession planning should not be seen as a way to shield assets. This idea is often promoted by some of the professionals, as it is mistaken, and that, in practice, is completely untenable. The planning seeks to organize the property and the design of the succession, legal, and efficient manner, but it does not provide an absolute guarantee against the risk or loss.
In addition, as I have said, and the estate planning and inheritance should be used only for the organization, and the protection of family property, but it should also be considered in cases in which the purpose of the family is the maintenance of the family business.
This process begins with the identification of the founder of the company, which is responsible for the emergence of the assets that make up the patrimony of the family, and their dreams. Through proper planning, it is possible to guarantee with a transition to an efficient and smooth, while protecting the interests of the founder of the family, as well as preserving the legacy built up over time.
A set of planning:
There are specific situations in which they can generate great concern and uncertainty in the business, such as retirement, the death or departure of a founder. In these circumstances, it can have an impact directly on business continuity and stability to organizations.
In these scenarios, and challenging, planning sheet, and the book is as an essential tool that is used to ensure that a transition to an efficient and harmonious, taking in an early stage, and the heirs, so that when the real estate, while some conflicts are to be avoided.
It is important to note that the effectiveness of this design depends on the implementation, ‘ in life, allowing the founders to establish clear guidelines regarding the continuation of the business, and the heirs, therefore, are aware of these guidelines.
The planning is well structured, it should provide for the possibility of an heir to be the only heir, as well as to enable those who wish to legitimately do this. That’s why being the heir of a family company, it does not mean that they need to manage that thing. However, if you choose to do so to an heir, he should bear in mind that his or her rights to be the only member and a non-administrator.
The planning is well-structured, well, it must provide a way for the management and organisation of this administration, the family-run business. In some cases, this is through the creation of a board of directors, which is not to be confused with the role of administrator. The board of directors is a body of advice, while the government is responsible for the conduct of the business on a day-to-day.
In addition to this, the asset and succession planning should include legal, tax and financial resources, and ensuring that the transition is smooth, and minimize conflicts among the heirs.
When you create a comprehensive plan members can be assigned to the succession of their business in order to preserve the family legacy, and promoting the sustainability of the business over the long term.
The benefits of the plan:
At the time of writing of estate planning, it is necessary to examine carefully all the materials and sources of laws that sanction such a procedure. These include not only the laws that govern the family, such as the CC, and the rules on marriage, and marriage, but also to the provisions relating to succession in which they determine how the assets are to be divided among the heirs.
In addition to this, it is essential to consider the tax laws, which relate to the goods, and gifts. The in-depth understanding of these rules is crucial, in order to ensure that the design is not only cool but it is also great from the point of view of taxation.
The use of these sources and the legal basis, your estate planning should always give priority to the interests of each and every business that is involved. In this way, in the planning, wealth is not simply a question of legal protection, but rather a proactive approach that seeks to ensure the continuity of the family business.
In addition to the benefits already mentioned, the estate planning provides other important benefits, such as the centering of the management of the financial assets. This approach helps avoid the configuration of the condo on the goods, for the sake of simplicity, and so the succession process, and to facilitate the administration of the estate.
In short, the asset and succession planning is an essential tool that enables you to family, to draw up, in a clear way in advance, on the structure of their society, and to the management of their property upon the death of the founder, or principal owner.
Having a detailed plan, your family can clearly define who will be the shareholders and their shares, who shall be the directors and their powers, to ensure that all members have an understanding of your rights and responsibilities. This arrangement not only makes it easier for the administration of an estate, but also ensure that the vision and goals of the founder, to be held in the next generation.
In conclusion, a wealth planning and estate may be in addition to the organization, and the protection of family property, the maintenance of the family business, at the end of the perpetuá them to people in need, without which the essence, it is gradually lost over time. And, therefore, it is possible, as has been shown, to achieve this goal is through estate planning and succession.
CHANCE, Took it all. The company and the successors. In the SUCCESSION AND wealth: HOW to ENSURE that YOUR HEIRS AND BUSINESS. São Paulo, Maltese, 1993. p. 121.
MOREIRA JUNIOR, Armando Lorenzo. Behind the scenes of the family-owned company. São Paulo: Atlas, 2011. p. 2-3.
IBDFAM. The history of the Estate Planning, Rolf Madaleno. Available at: https://ibdfam.org.br/assets/upload/anais/299.pdf. This 20/10/2024.
SANTA CRUZ, a MOSQUE, it would be why. The formation of a holding company as an instrument of succession, property, and tax. Available at: https://repositorio.jesuita.org.br/bitstream/handle/UNISINOS/12225/Valeria%20de%20Melo%20Santa%20Cruz%20Mesquita_PROTEGIDO.pdf?sequence=1&isAllowed=y. This 20/10/24.
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