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Your power to winBusiness inheritance
Inheritance of a Business is one of the most complex categories of inheritance cases. This type of inheritance has its own specifics, as it affects not only the heirs but also the interests of the deceased's business partners. While business inheritance was once a rare occurrence, there is now a growing trend in such cases. Due to the imperfections of civil legislation, numerous legal issues arise in this area.
It is important to note that the heir assumes not only the property rights of the deceased but also certain obligations and liabilities related to the company's financial and business activities.
To properly formalize business inheritance and minimize the related risks, heirs should seek assistance from specialists who focus on resolving such matters.
Consultation on formalizing business inheritance;
Preparation of the necessary documents for the successor to acquire corporate participation rights in the company;
Legal support in the process of acquiring inheritance rights by the heir;
Representation of interests in court in business inheritance cases.
If you are faced with the issue of inheriting a business, the first step is to determine the full list of the deceased’s assets to understand what you are entitled to when accepting the inheritance. If the exact composition of the deceased’s assets is unknown, you should contact a notary, who has the authority to send official requests to both government bodies and private organizations. Once the list of assets belonging to the deceased has been identified, it is necessary to take measures to preserve these assets until you become their rightful owner.
It is important to remember that only those individuals listed in the Certificate of Inheritance Rights are considered heirs. This is the exclusive document that confirms inheritance rights and is issued only after six months from the date the inheritance was opened.
To make it easier for future heirs to inherit a business, it is advisable to consider drafting a legally sound will that specifies the procedure for inheriting business assets. When preparing a will, the testator should clearly identify all heirs, taking into account the interests of those individuals whose right to a share of the inheritance is guaranteed by law. The document should also include a detailed list of all assets being bequeathed.
The company’s charter should provide a mechanism for inheriting corporate rights, and a corporate agreement should be concluded to outline the management of the company during the inheritance process. Additionally, it is important to establish a formula for determining the value of corporate rights after reassessing the company’s fixed assets. This should include the mandatory preparation of a balance sheet as of the date of death and the date the inheritance is received, specifying which valuation should be used for calculations.
It is not uncommon for other members of a business entity to refuse to admit heirs in place of the deceased. In such cases, the heir is entitled to receive their share of the company’s charter capital in monetary or in-kind form. The size of the heir’s share in the company’s assets must be equal to the percentage of the charter capital that belonged to the deceased at the time of their death.
An heir (successor) can independently apply to the state registrar to join the company without requiring the consent of other company members. The remaining participants only need to periodically check the Unified State Register (USR) to verify any changes in the company’s membership.
In this case, the future actions of the company's participants depend on the size of the deceased member’s share in the company’s authorized capital.
If the deceased member's share was less than 50%, and within a year after the deadline for accepting the inheritance, the heirs have not submitted an application to join the company, the company may exclude the deceased participant. Since the general deadline for accepting an inheritance is six months, the exclusion can take place one and a half years after the participant’s death if the heirs have not joined the company. This decision is made without considering the votes of the participant being excluded. Essentially, the deceased individual is formally removed from the company’s membership. In this case, the heirs receive the market value of the deceased participant’s share. If the deceased member's share was 50% or more, the company may make decisions related to the liquidation of the company.
An inheritance includes all rights and obligations that belonged to the deceased at the time of inheritance opening and did not cease due to their death. An heir, whether under a will or by law, has the right to either accept or decline the inheritance. However, inheritance cannot be accepted conditionally or with reservations. Therefore, if the encumbrances and problems of the inherited business exceed the value of its assets, the heir has the right to refuse such an inheritance.