This tool is relevant, primarily, for those who have minor children, who, in view of their age, are unable to participate in the running of the business, or heirs, who do not want to continue the work of their parents. Hereditary Fund allows you to involve heirs to participate in the business, leaving behind them the possibility of control over the actions of the Executive body of the Fund. The beneficiaries will receive the set by the testator payments, losing the right to a compulsory share of inheritance.
If the Fund was created as urgent, for example, until the attainment of majority by the children or until the occurrence of another event, the testator may determine the procedure of liquidation of the Fund and the transfer of assets to heirs or cash from the sale of assets of the Fund.
For the transfer of assets with hereditary Foundation the couple will have to plan the inheritance together. You must split the assets with a marriage contract, to avoid splitting of assets and allocation of marital share of the jointly acquired property of the surviving spouse, but also to determine the hereditary mass, which will be transferred to the Fund.
The owner of the business assets should make a will and prepare the decision on creation of genetic Fund by defining the terms of property management, the procedure of payment to beneficiaries and other details of the operation of the Fund. It is important to remember that after the establishment of the Fund to amend the Charter only in some cases and only through the court.
There are significant flaws in this tool: in our country a special system of taxation for inherited funds is missing, which could theoretically result in double payment of taxes.
One Testament to two
While the couple cannot make a joint will, but this possibility will have them from 1 June 2019. Its conditions will be approximately the same as in the case of individual wills: couples can jointly determine heirs and the property included in the succession mass and to exclude heirs or assign a new one.
Of course, the mandatory share in joint will also be retained. However, the couple appears a new feature, by mutual decision, they will be able to determine the order of the transition estates to the surviving spouse first, then to other designated heirs. This will protect the surviving spouse from hereditary litigation and fragmentation of property for shares, as in this case, the heirs will come into its own only after the death of the spouse.
The nuances of this tool lies in the fact that the joint will (in contrast to separate) terminates after a divorce. In addition, a will is considered invalid if one of the spouses will make a separate last will and Testament on the same property which has already been mentioned in the joint will. A joint will can be challenged on the suit of either of the spouses during their lifetime.
Inheritance by contract
Another innovation in the succession law in June 2019 will be hereditary contract, which will become an integral part of the law of succession in Russia. In fact, between the testator and a beneficiary is the contract under which it determines the number of heirs and the order of transition of the property rights subject to all the requirements specified in the contract.
Such an agreement allows you to designate heirs for clear conditions for entry of inheritance. Moreover, in addition to the transfer of rights to property, inheritance, the contract may, by analogy with the will, to contain the condition of the executor, and to hold beneficiary’s duties property or non-property nature (execution of testamentary refusal or laying).
Hereditary contract can be a tool for personal planning of the inheritance and to determine the order of transfer of rights to common property of spouses or property of each of them in the event of the death, including the come at the same time.
In General, the hereditary contract is similar to a will, but it greatly simplifies the procedure for entry of inheritance, since the property will pass to the heir on the basis of the contract. That is to worry about deadlines for accession to the law of inheritance as it occurs when you inherit under the will, no longer have. Moreover, the hereditary contract is paramount, therefore in case of detection of probate on the property specified in the succession agreement, the agreement shall prevail, and will in this section will be void.
However, when working with this tool it is necessary to consider several important points. For example, a hereditary contract must not be contrary to the rules of compulsory share of inheritance, including arisen after its conclusion. Also the testator after signing the contract reserves the right to dispose of property at own discretion, including to make any transaction, as well as to unilaterally abandon the hereditary contract by notice to all parties.