Business Succession Issues in Germany
"He knows is family is well and fairly provided for, and the smooth succession of his business is planned."
One of our German clients has spent his life steadily building wealth through the growth of his business, a niche manufacturing company. When he decided the time was right to settle his personal estate and business succession issues he turned to us – he has been a Deutsche Bank customer for 11 years now.
The Situation - Considerable assets, family responsibilities
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As a wealthy industrialist our client sought to secure the business he had built up for transfer to his eldest son. He also wanted to make provision for his younger son, living and working in the
Our Advice - A comprehensive inheritance strategy
After detailed consultations with the client we put forward a wide-ranging series of proposals to help him achieve his goals. We suggested he effect the gradual transfer of the business to his eldest son by steadily increasing the stock allocated to him. We also advised that he maximize tax-free gifts to family members and transfer business funds to private wealth by increasing the annual payout ratio to himself. The process of succession planning also included the recommendation that he sell some poorly performing rental real estate, in order to expand his business-independent liquid assets.
What Changed - Managing assets on his behalf
The client accepted and put into practice most of our recommendations, and decided that henceforth he would ask the bank to manage his assets on an Active Advisory basis. This would allow him to continue making investment decisions in the light of extensive professional support.
Deutsche Bank has expert local Relationship Managers in more than eighty countries around the world.
The Outcome - Confident about the future
The client has achieved the peace of mind he sought. He knows his family is well and fairly provided for, and the smooth succession of his business planned. He appreciates the regular wealth planning updates we provide, and the responsibility we have taken in the risk management of his liquid assets.
4. Note that Deutsche Bank does not provide tax, accounting or legal advice. See further details
