Sponsored: accon■avm
Revision of the partnership deed upon business transfer
Transmission from parent(s) to child(ren) is still the most common. A business transfer is a complex process. The partnership or general partnership deed often forms the beginning and the foundation of the business transfer.
The parent(s) and intended successor(s) record a number of important matters in the partnership or general partnership deed.
- First of all, it is very important how the parents introduce the movable and immovable property into the new company form. By preserving hidden reserves, parents can avoid the payment of gift tax with the contribution. By contributing land economically, there are, subject to certain conditions, opportunities to revalue the lands. The choices in the decision-making powers of the partners are important for a clear division of tasks and roles between parent(s) and successor(s).
- It is also important for cashing in on young farmers' schemes. The choices in the separation and residence clause are important for the entire family and in particular for the intended successor(s). The successor then receives a share of the profit, taking into account the additional income and the premiums or benefits in the context of incapacity for work.
- Finally, the deed regulates the range of values for which the intended successor may take over the company from his parents.
Revision of the partnership deed
The partnership or general partnership deed lays the foundation for the business transfer. Parent(s) and intended successor(s) will get to work with the renewed agreements and try every year to get closer to the desired business transfer. Every year, parent(s) and successor(s) make various investments after proper consultation. The company grows partly due to the contribution of the successor.
Over the years, the division of tasks and roles between parents and the intended successor has changed. It is often desirable to amend the deed with the aim of optimizing the business transfer. Parents should make their wishes clear to the successor at an early stage. This concerns the wishes in the form of an owner-occupied home, takeover date, income in addition to AOW, time and money for hobbies and (financial) wishes for the other children. In many situations, these wishes of the parents are the starting points for the successor and preconditions for the growth of the company.
Parents can never discuss their wishes with the successor too early. However, wishes can change over the years. This can also be a reason to reconsider and adjust the deed.
Whitepaper: The transfer of your arable farm
In almost all cases, parents and successor(s) undertake a period of partnership or general partnership before fully transferring the arable farm. Various motives are conceivable for this. In the white paper: The transfer of your arable farm, we go deeper into the motives and tell you what you should take into account. What risks are there? How can you overcome this? Question the white paper now free of charge.
Design
Are you toying with the idea of transferring your agricultural business within the next 10 years? Please contact us with an acconâ– avm adviser and discuss matters that are important to your company. Pre-sorting in time gives you peace of mind and can benefit you.
Business transfer file
For more articles and topics related to business transfer, please check our file regularly Agricultural business transfer† New articles appear regularly.
Would you like to be kept informed monthly about topics that concern you as an agricultural entrepreneur? Then sign up for the newsletters of acconâ– avm advisors and accountants via on registration form.
