Brazilian Tax reform has brought a new perspective to wealth planning and, with it, the possibility of reviewing some adopted measures.
It’s important to remember that managing personal assets goes beyond day-to-day administration; it involves protecting them from the risks inherent in professional and business activities, ensuring their perpetuation and optimization for future generations.
In the Brazilian scenario the establishment of a family asset stands out as one of the most effective mechanisms.
Below we highlight 3 benefits of this measure, permitted by Brazilian law, which is rarely discussed but essential when talking about the asset organization of business families:
1. Non-attachment of residential property: From the moment it is established as a family asset, the property intended for housing is no longer liable for a large part of future debts, offering security to the family nucleus even in times of financial instability.
2. Possibility of protecting financial assets: Protection can also be extended to financial investments, as long as the income is used to maintain the property and support the family, creating a broader protection network than one might imagine.
3. Long-term asset stability: Protecting the residential property and the resources linked to it contributes to the organization of the assets, brings more peace of mind in the present and facilitates succession planning in the future.
The establishment of a family asset is a strategic step in carrying out an wealth planning in Brazil, providing greater security and effectiveness in achieving the objectives set out in the planning.
Its effective implementation, however, depends on a personalized legal analysis, since the characterization of the family asset requires the fulfillment of certain requirements. In addition, it is essential to consider the particularities of each heritage, in order to ensure the maximum security and suitability that this measure allows.
