Family Holding as a Succession Planning Instrument – Tax and Corporate Aspects

Abstract

The family holding company is a legal and financial structure used to establisha company intended to fully or partially control other organizations, without directly participating in the economic activities carried out by these controlled companies. Based
on this system, the article presents a critical approach to the family holding company, showing how this tool can be applied in the face of a family asset succession, aiming to obtain better organization in succession planning, reduction in tax expenses and consequent preservation and protection of assets. The concept of family holding company is presented, showing its origins, regulations, classifications and objectives. Through the succession, tax and corporate approaches of this relevant instrument, its effectiveness, advantages and benefits in relation to the traditional succession model are considered.
Thus, it is expected that this will be the natural path for the future of family businesses regarding family asset succession.