PLANNING OF CORPORATE GENERATIONAL SHIFT
The corporate generational shift is an extremely important and delicate passage which could have strong consequences both in the field of buisness and within the family.
The most common requirements for a businessman are the following ones:
- The choice among the heirs of the most suited to handle the family business;
- The protection of the whole corporate assets from third parties and unwanted family members;
- The preservation of the control by the founder until his death;4. The continuity in the management policy of the company;
- To foresee potential tensions among the young ones;
- To prevent sons, daughters and nephews from individually having access to their own interests and to put them in danger because of personal economic events.
In the creation of a trust to plan the corporate generational shift, the property of the company is transferred to the trustee in order to maintain the unity of the corporate structure. In the case of trusts including exclusively company shareholdings, to continue to delegate the administration to the trustee in office without risking any interruption in the management policy of the company. In this case, the beneficiaries of the revenues will be the very businessman and his family while his heirs will benefit from the final attribution of the assets, as defined in the trust deed.
The trust is therefore the tool able to meet all the needs of the entrepreneur
thanks to its ability to give unity to the ownership of the shareholdings, to regulate the management method and the exercise of social rights and also to armor the assets subject to the the trust in accordance with economic events.