Family Holding: Protection and Succession Planning

A family holding company is an essential legal tool for managing and protecting family assets. This article aims to clarify the concept, advantages and necessary precautions when establishing a family holding company.

What is a Family Holding?

A family holding company is a company created with the aim of managing, preserving and perpetuating the assets acquired by the family over the years. It professionalizes the management of family assets, separating the risks of business activity from the personal assets of family members.

Advantages of Family Holding

• Asset Protection: The family holding company protects the family's assets against potential creditors and litigation, since the assets are transferred to the company, making it difficult to seize them.

• Succession Planning: Facilitates the transfer of assets to heirs, avoiding the lengthy and high costs of an inventory process. The succession can be planned during the person's lifetime, with criteria defined by the patriarch or matriarch.

• Tax Savings: Structuring a holding company can result in tax savings, especially with regard to ITCMD (Tax on Transfers Due to Death and Donations) and IR (Income Tax).

• Professionalized Management: Asset management is now carried out in a more professional manner, with clear and defined rules, which can avoid family conflicts and ensure business continuity.

  
  

Care in the Formation of a Family Holding Company

• Adequate Planning: It is essential to carry out detailed planning, considering the particularities of each family and the objectives to be achieved.

• Legal and Accounting Consultancy: Having specialized professionals is essential to ensure that the holding company is set up in accordance with current legislation and that all tax benefits are taken advantage of.

• Transparency and Communication: Keeping all family members informed and involved in the process is crucial to avoid misunderstandings and ensure that everyone understands the benefits and responsibilities arising from the creation of the holding company.

A family holding company is an effective strategy for protecting and managing family assets, offering significant advantages in terms of asset protection, succession planning and tax savings. However, it is essential to have specialized legal and accounting advice to ensure that the holding company is structured appropriately and safely.

This article is for informational purposes only and is not a substitute for a consultation with a professional. If you still have questions or need more detailed guidance, please contact us by clicking here. Our team is ready to understand your situation and help.