Inheritance and taxation

An important aspect in planning the succession of business and asset inheritance is the timely and thorough planning of these processes.

In matters of business succession, it is necessary to select and prepare a successor in advance, determine the value of the business and arrange an insurance policy, wherein the beneficiaries under the policy will be partners or successors. Insurance policies are an effective mechanism in the rights of succession, because in the event of death of a business owner or one of the partners, they allow you to buy out a share of the business through insurance payment and immediately become a legal owner. These transactions occur due to properly created contracts for the repurchase of shares between the successor-owner or several business partners.

In the issues of inheritance of pre-determined shares of assets that the heir(s) receive, or the distribution of payments from the received revenues, trusts and funds have the advantage, since the owner (founder) of the trust or fund has the opportunity to foresee the order of inheritance, the size, method and time of payments between the beneficiaries – heirs without damaging existing business or existing integral assets.

Both trusts and funds, have a number of tax advantages in matters of inheritance. First of all, the profit received by the fund/trust is not a subject to profit tax; secondly, the founder has the opportunity to plan and distribute the tax obligations that will arise with the heirs in the future, at the time of entering into the inheritance rights.

Aston Financial Services consultants provide a wide range of services in matters of planning business inheritance, accompany in conducting a business evaluation, drawing up share buyback agreements, planning inheritance issues and tax liabilities.