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| Letting go while keeping influence – the reciprocal family pool | ||||
| Succession
schemes; advice on succession
Family trusts; trust-based solutions |
Usufructuary arrangements mean that family assets become split up, destroying their loan value. Moreover, they are not sustainable. These disadvantages can be avoided by using a reciprocal family pool. Family assets are moved to a limited commercial partnership with a GmbH (limited company)as general partner (GmbH & Co. KG). Property-transfer tax is not payable on this transaction. Next, the parents donate their shareholding to the children. In effect,
the parents have already transferred their assets in a tax-favourable
way, while continuing to have a majority of votes and profit-retention
rights.
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