The large number of family businesses in the country

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Succession planning is one of the pillars involved in the creation of a family holding company, as it enables the prior and careful organization of the transfer of assets to heirs and, especially, provides an effective succession in the management of the business of any company that forms part of the set of assets, reserving to the patriarchs the responsibility of determining the fate of their assets during their lifetime.

Planning also proves to be fundamental in protecting family bulk sms india assets to ensure their longevity, as it allows the patriarch and matriarch to safeguard their assets from unforeseen events, such as divorces and even the passing of heirs, which often end up compromising the family entity due to disputes over assets.

Mamede (2022, p. 122) offers a comprehensive notion of the importance of succession planning:

“(…) succession planning also allows parents to protect the assets that will be transferred to their children through protection clauses (restrictive clauses). Thus, to avoid problems with spouses, it is enough to donate the shares and/or stocks with an incommunicability clause and thus the securities will be excluded from the community of inheritance (article 1,668 of the Civil Code), although the fruits received during the marriage are not excluded (article 1,669); in the case of corporate securities (shares or stocks), these fruits are dividends and interest on equity.”