Since the legal succession often does not correspond to the testator’s wishes, regulating the succession in advance in the event of the entrepreneur’s death is advisable. It is of particular importance that the entrepreneur’s will creates clear conditions for inheritance by specifying who will succeed the entrepreneur. In this way, disputes among the heirs can be prevented.
Careful preparation is required to comprehensively secure the succession of the business in the will. Therefore, not only the regulations under German inheritance law should be considered. In particular, the articles of association must also be comprehensively examined and, if necessary, adapted to the testator’s will. For example, it may be required to insert a succession clause.
However, it is not possible for every heir to immediately assume responsibility for the inherited company share. This is the case, for example, if the heirs are minors. Furthermore, it is not uncommon for disputes among the heirs to stand in the way of an orderly company succession. In such cases, execution of the will is often ordered over the company share. The executor is supposed to enforce the testator’s will and thus ensure the company’s succession. The execution of the will can be limited to a short time and only serve to settle the estate (settlement execution). However, it can also be permanent and serve the administration of the estate (administrative execution). In this case, the heirs are deprived of their power of disposal over the estate for a certain time.
The admissibility of the arrangement of an execution of a will depends on the legal form of the business. Furthermore, the execution of a will can be excluded by the articles of association. However, alternative possibilities exist for such cases, such as the so-called trust or power of attorney solution. The German lawyers at Schlun & Elseven Rechtsanwälte will be happy to outline which arrangements for the execution of a will or the trust or power of attorney solution should be made. They will support you in every further step.