Claims to Supplement a Compulsory Portion in Business Succession
Cologne, NRW -- (SBWire) -- 03/07/2013 --GRP Rainer Lawyers and Tax Advisors, Cologne, Berlin, Bonn, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart, Hanover, Essen, Nuremberg Bremen and London www.grprainer.com/en explain: First, it must be considered whether the beneficiaries of a compulsory portion are able to generally assert claims for a compulsory portion or to supplement a compulsory portion in the respective cases. These claims should in principle be directed towards the value of interests in a partnership such as civil-law partnerships, general or limited partnerships, or sole trader businesses, from whose succession the beneficiaries of a compulsory portion are wholly or partially excluded.
Furthermore, it should be clarified which case is concerned with dissolution, since in the event of interests in a partnership being dissolved due to the death of a partner, the continuity of the partnership can be set out in so-called continuation clauses. It ought to be noted in this instance that continuation is only possible among the remaining partners. Whether and to what extent an interest in a partnership can be inherited should be fixed in so-called succession clauses in the partnership agreement.
In analysing the claims for a compulsory portion, it is essential in most cases to consider these succession clauses, because only then can it be established whether claims to supplement a compulsory portion arise.
The transfer of a business ought to be carefully considered and planned. Should a business owner resign then a suitable successor must be found. Specifically in the case of a family business, the transfer of the business to a family member, for example, can often be self-evident.
Nevertheless, the resulting diverse room for manoeuvre should be used efficiently. It is advisable to seek out an experienced lawyer as early as the planning stage for the business transfer and not only take his advice, but also accept his help in an overall review of all legal aspects. In this way, interests can be best implemented and a corresponding strategy developed.
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GRP Rainer LLP www.grprainer.com/en/ is an international firm of lawyers and tax advisors who are specialists in commercial law. The firm counsels commercial and industrial companies and corporations, as well as associations, small- and mid-sized businesses, self-employed freelancers and private individuals worldwide from offices Cologne, Berlin, Bonn, Dusseldorf, Essen, Frankfurt, Hamburg, Hannover, Munich, Stuttgart, Bremen, Nuremberg and London UK.
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