What it usually looks like
A family business is built over years, usually around one person. That person knows the business partners, signs the contracts, has access to the accounts and makes the key decisions. As long as everything works, the question ‘what next?’ gets put off. It comes back with illness, with plans to step back, or when the children start asking about their role.
Succession is not one document but several decisions that have to fit together. Who will run the business and who will own it – because it need not be the same person. What the family members who do not work in the business will receive. What the current owner will live on. And what happens if life turns out differently from the plan.
The tools are chosen to fit these decisions: the articles of association, a gift, a will, a family foundation, powers of attorney. Each has its own legal and tax consequences. That is why we first establish what the family wants, and only then choose the form.
Points to watch
Ownership and management are two different things
Not every child wants to run the business or is able to, but each can be a co-owner. Sometimes what works best is a management board from outside the family, with the family as owners who supervise. It is worth settling this openly before chance settles it for you.
Sole traders are the most exposed
A business run in the owner’s own name is tied to that person – together with its contracts, permits and access to the bank account. Without preparation, a sudden event can bring the business to a halt overnight. Continuity comes from changing the legal form or naming in advance the person who will run the business at such a moment.
Equal does not always mean fair
Dividing assets between the children who work in the business and those who do not is the most common source of disputes. Remember the forced share (zachowek) – the claim of the closest relatives left out of a will or of lifetime gifts. It is better to arrange this during your lifetime, by talking it through, than to leave it to a court.
Tax depends on the route and on the formalities
A gift, an inheritance, a sale and the transfer of assets to a company or a foundation are taxed differently. Exemptions for close family often require the tax office to be notified on time. It is worth working out the consequences before signing the documents, not afterwards.
The plan needs refreshing
Families and businesses change: grandchildren are born, someone leaves the business, a new shareholder comes in. Documents drawn up years ago may no longer reflect what the owner wants. It is good to revisit the plan after every significant change.
How we work – step by step
We talk to the owner
We start with questions, not documents: what you want for the business, for the family and for yourself. The conversation is confidential and does not require any decisions at the outset.
We look at the business and assets
We check what legal form the business has, what the articles of association say, which contracts and permits are tied to the owner personally and what makes up the private assets.
We talk to the family
If you wish, we can help you talk things through with the successors and other close relatives. Clear agreements at this stage prevent disputes later.
We propose a plan and weigh the consequences
We present the possible routes together with the legal and tax consequences of each. We say plainly what we recommend and why.
We prepare the documents
Amendments to the articles of association, powers of attorney, gift agreements, family foundation documents – we prepare them and take them through the necessary formalities. Where the law requires a notary, we work with a notary.
We carry out the plan in stages
Handing over a business rarely happens in a single day. We help break it down into stages – from the successor joining the management board to the transfer of ownership – and we revisit the plan when circumstances change.