Some problems can stand in the way of succession planning of a business, all the more if persons entitled to a compulsory portion are disadvantaged in the process of succession.

Cologne, NRW -- (SBWire) -- 04/05/2013 --GRP Rainer Lawyers and Tax Advisors, Cologne, Berlin, Bonn, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart, Hanover, Essen, Nuremberg, Bremen and London www.grprainer.com/en explains: At the beginning, it is important to find out whether the persons entitled to compulsory portions in the respective cases are able to assert claims for compulsory portions or claims for their supplementation at all. 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 persons entitled to a compulsory portion are wholly or partially excluded.

It should be clarified which specific case is concerned with dissolution, since in the event of interests in a partnership being dissolved due to the death of a partner, it is possible to set out the continuity of the partnership in so-called continuation clauses. It is of central importance in the aforementioned case that continuation is only possible among the remaining partners. Whether and to what extent an interest in a partnership can be bequeathed should be determined in detail in so-called succession clauses in the partnership agreement.

In analysing the claims for compulsory portions, attention should first and foremost be focused on the succession clauses, because only then is it possible examine whether there are claims to supplement a compulsory portion in the first place.

The transfer of a business ought to be carefully considered and planned, because should a business owner resign then a suitable successor must be found. The transfer often represents a complex and protracted undertaking for the parties involved. Specifically in the case of a family business, the transfer of the business to a family member, for example, can often be self-evident.

The arrangement options should be viewed from the tax perspective. Therefore it is advisable to seek out a 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.

About GRP Rainer LLP
GRP Rainer LLP http://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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GRP Rainer LLP
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