How can I best plan my capital assets for business succession?
April 6, 2024 | 40,00 EUR | answered by Paula Köhler
Dear tax advisor,
My name is Dietrich Busch and I am facing the challenge of planning my capital assets optimally for business succession. As the owner of a medium-sized company, it is important for me to develop a long-term strategy to ensure that my assets can be transferred to my successors in the best possible way.
Currently, my capital assets consist of various investment forms such as stocks, bonds, and real estate. I am unsure of how to best structure and transfer these assets in order to avoid tax pitfalls and at the same time provide my successors with a solid foundation.
My concerns mainly lie in the fact that I do not know exactly which tax aspects to consider when transferring capital assets to my successors. Additionally, I want to ensure that the transfer runs smoothly and fairly, without jeopardizing my equity base.
Can you therefore show me possible solutions on how I can optimally plan my capital assets for business succession? What tax optimization possibilities are there and what legal framework should I consider? What tools for succession planning do I have and how can I best utilize them?
I look forward to your expert advice and thank you in advance for your support.
Best regards,
Dietrich Busch
Dear Mr. Busch,
Thank you for your inquiry regarding the optimal planning of your capital assets for the business succession. It is very important to develop a long-term and well-thought-out strategy to ensure that your successors can take over the assets in the best possible way without falling into tax pitfalls.
First and foremost, it is important to understand that the transfer of capital assets to successors is relevant for tax purposes. Depending on the type of assets and the amount of wealth, various taxes such as gift or inheritance tax may apply. Therefore, it is advisable to work with a tax advisor early on to develop possible tax optimizations.
One possible optimization could be the gradual transfer of assets to take full advantage of exemptions in gift or inheritance tax. The use of tax-efficient transfer forms such as anticipated succession or transfer of business assets may also be beneficial. Your tax advisor can show you individual solutions tailored to your specific situation.
Furthermore, you should consider the legal framework of the transfer. Aspects such as inheritance law, gift law, and corporate law play a role here. It is important that the transfer is smooth and fair, and that all legal requirements are met.
In terms of succession planning instruments, you have various options available. These include, for example, wills, inheritance contracts, gifts, foundations, or the establishment of a family holding company. Your tax advisor can help you choose the right instruments for you and make the most of them.
Overall, it is advisable to start planning for business succession early and seek professional support from a tax advisor. Only in this way can you ensure that your capital assets are optimally planned for succession and that your successors receive a solid foundation for the future.
I hope this information is helpful to you and I am available for further questions.
Sincerely,
Paula Köhler, Tax Advisor
