Tangible
FONS is all about clarity and peace of mind - not in theory, but in real life. On this page you can read some recognizable stories of people and entrepreneurs who, each in their own way, had complex questions. By looking together, planning and making regular adjustments, they found peace of mind and direction for the future.
An operation meant to save money can cost you just as much money
Marc (fictitious name) is an IT worker with his own company. He also has his private home worth €400,000, no legal partner or children, but still his mother.
By working hard, he has built up equity in the company of about €2mio. Since all the shares are in his own hands, he falls under the definition of "Family Company" today. The calculation of his inheritance tax (free service from his bank) was not too bad: inheritance by mother at 3% (unless he donates at 0%).
We pointed out the following to him, however: when inheriting at the favorable rate of 3%, the company MUST continue for three more years. And here is the problem: who will continue it? Mother is not an IT professional and there are no employees...
In addition, how can mother monetize the company? And if that succeeds at all, then VLABEL (if sold within three years of death) will come and collect the difference in inheritance tax. After all, the "preferential rate" of 3% was created to prevent heirs from having to sell the business because of inheritance tax. If they do sell, the right to the preferential rate automatically expires. Consequence: recalculation at 27% instead of 3% + interest on arrears. He therefore chose to pay these out now (especially now that this is only going to get more expensive) and is considering buying real estate with them. This way he already halves his equity in the company.
But will that solve anything? Whereas the shares would be taxed at 27% (as of €250,000) if they were inherited by the mother as a non-family company, the new real estate will now also be taxed at 27% (because it is already in the highest tax bracket because of the existing home). Did it then make sense to distribute the liquidation reserves? What can you actually do now?
Such issue needs to be looked at thoroughly. Yes, there are solutions, but they must be tailored to what you want, not just euros and percentages. And they have to be future-proof (as much as possible), even if Marc would get married or mother dies.
Do you have similar questions? Feel free to make a no-obligation appointment, and together we'll see what we can do for you.
Saving Inheritance TaxPlanning Your Inheritance
Michael (fictitious name) has been retired since the beginning of this year. He doesn't want to let go of the company completely, but he now has a little more time to work on the question: How can I pass on my company to the next generation in a tax-friendly but above all sustainable way? What should I do with my private real estate?
In consultation with Fons and in cooperation with Michael's accountant, it was decided to first set up a management company for Michael. The latter could then continue to cover his expenses through management fees from the main company. Next, consideration was given to how the company and private real estate could be passed on. After all: the inheritance calculations showed that the heirs would have to pay a considerable amount in inheritance tax, should father suddenly die.
According to Michael's wishes (for he should feel good about this), shares and real estate were (partly) transferred to the children by means of the necessary (direct or indirect) gifts, while Michael still retains the necessary control. In all this, the children's marriage contracts, the (possible future) composition of their families, their involvement in the company, etc. were also taken into account. "Additionally," inheritance taxes will now be about 80% lower than before the interventions.
Every six months the family (sometimes with the children, sometimes just father) visits Fons to keep their Guide to Peace of Mind up-to-date. Each time, the impact of new laws or shifts in wealth is calculated.
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A Sharp Situation Sketch
Erik and Marie (fictional names) have built their company together over the years. Their retirement is approaching and they are thinking of quitting, yet this raises some complex questions. They have two children whose daughter works in the business and the son is employed elsewhere. Leaving the business to the daughter seems logical, but how do they treat their son the same way? They also don't want to forget the grandchildren; the daughter has three children, the son two.
Also here, Fons first made a sharp outline of the situation: family and professional, which also intertwined over the years.
After the drawing up of the Guide to Peace of Mind, in which a number of recommendations and possible scenarios were also formulated (gifts, partnership, inheritance tax and planning, ...), clients determined the solution with which they genuinely felt comfortable. This was further developed with the client's notary and accountant. During the six-month follow-up, son and daughter were also invited and the step-by-step plan was calmly discussed, with room for everyone's insights and comments. An action plan was agreed upon and clients look forward to their future (and that of the company) with peace of mind.
Succession taxes in different scenarios
Patrick (fictitious name) divorced 20 years ago. From this marriage, two children were born and continued to grow up with the mother. A year after the divorce, Patrick met his new partner who also had two young children at the time. Because of bad experiences in their respective (v)divorces, they never married each other and (for yet other reasons) never officially lived together at the same address. In practice, however, they did always form a family and raised the partner's children together.
After selling the business, Patrick realizes that he must finally do something, but what? After all, upon his death his inheritance would go entirely to the children from his first marriage, upon his partner's death her inheritance would go entirely to her children. Via will you can designate other beneficiaries, but the inheritance tax is then staggering. Marry anyway? Or would cohabitation suffice? Many questions that had been on his mind for some time, but had never been tackled in depth.
Fons also made an extensive situation sketch including calculations of inheritance tax in various possible situations. On this basis, a plan of action was drawn up and the client was put in touch with an inheritance lawyer from Fons' partner network. At the six-month follow-up, the Guide was adapted to the new situation and Patrick can now enjoy his well-deserved retirement in peace.
How to sell part of the company?
Bart and Bert (fictitious names) are two brothers who took over the family business together. Last year they decided to sell part of the business. With the proceeds, they wanted to invest more diversely and participate in other companies.
But how do you sell part of the company? How do you best structure the future investments? What if one of the two brothers suddenly dies? Should the other brother then continue with the heirs of the deceased? Bart is single, Bert is married and has 2 children...
Also here Fons first took a sharp picture and supported the client (also with the help of the partner network) in setting up the right structures (company form, shareholder agreements, etc) and preparing for possible deaths. Because Bart and Bert are active entrepreneurs, they look forward to each subsequent six-monthly for an overview of the state of affairs, the impact of new decisions and brainstorming on next steps. In every aspect, Fons ensures that they can make informed decisions. Knowledgeable and aware of the risks.
"Peace of mind"
Jan (fictitious name) is a young entrepreneur (31y) in the construction industry. Started as an employee, then self-employed and now proud owner of a well-run private limited company with one employee.
Jan has a first marriage behind him with a young son. Currently he has started a new relationship, but on the one hand wants to protect himself from repeating the perils of the first divorce, on the other hand he needs a plan of action for the expansion of his company... Additional staff? Partnerships? Buy-and-Build? Merger? Jan was able to count on Fons' pragmatic approach to clarify the various issues he was struggling with.
Today Jan has regained "peace of mind" (as he put it himself) and a clear plan of action that is adjusted every six months where necessary.
