Considering the uncertainties generated by the tax reform that is happening in Brazil and the growing interest in more efficient asset structures, asset and succession planning has become an essential strategy for enabling investments abroad, achieving tax efficiency, implementing family corporate governance practices and mitigating the risk of future disputes between heirs.
For the structure to be solid and effective, a multidisciplinary analysis is essential, capable of aligning family objectives with the best corporate and tax alternatives available — always considering the complexity and particularities of each asset.
We list the essential steps of personalized Planning according to family objectives:
1. Defining Objectives: The start of a Planning project requires this multidisciplinary discussion, involving tax, corporate and family areas, in order to clearly identify the intended objectives, enabling assertive actions to create a solid, but not complex, structure that allows for safe and non-bureaucratic movements, aiming for tax gains and avoiding unnecessary costs;
2. Analysis of Assets and Future Investments: Mapping and understanding of existing assets, as well as future investments that the family (or single person) intends to make, identifying the need to create a national or offshore holding company, to define how the assets will be allocated in accordance with the objectives established in Phase 1;
3. Family Structure: Organization of the family structure, including the preparation of a strategic plan for the implementation of family corporate governance, with the creation of a family protocol, shareholders’ agreement, wills, prior donations for the complete separation of the company’s assets from individual assets, and other procedures necessary to meet the objectives of Phase 1;
4. Form of Transfer of Assets: There are 2 important steps in the Planning transfer structure: the moment of integration of the existing assets into the newly established companies – offshore or national holding company – and, subsequently, the transfer of shares/stocks to future generations of the family. In both movements, the assessment of fiscal impacts and risks is mandatory, and the corporate steps to be taken must comply with this tax study, especially at this time of tax reform, in which there are still some uncertainties about future costs involved.
In Brazil wealth planning is a strategy that avoids unnecessary tax impacts, organizes governance routines and contributes to the preservation of family relationships, ensuring the continuity of the assets built over the years. Completing the four proposed phases strengthens the creation of solid and secure structures, minimizing the need for future adjustments that may generate additional costs or risks, especially in times of uncertainty, as is now the case with the existence of tax reform.
