SUCCESSORY PLANNING AND MINIMIZATION OF ITCMD IMPACT: ANALYSIS OF LEGAL AND FINANCIAL STRATEGIES

Abstract

The general objective of this study was to analyze the legal and financial strategies involved in succession planning with a focus on minimizing the impact of ITCMD. To this end, we sought to: identify the main implications of ITCMD in succession planning and asset transmission; highlight the legal strategies available to reduce the ITCMD tax burden in the context of succession planning; and discuss the financial strategies that can be adopted to optimize the asset transfer process, considering legal and tax aspects. To this end, the research methodology adopted a qualitative approach through exploratory research, employing the deductive method. The results showed that asset transfer can be optimized through a series of legal and financial strategies, minimizing the impact of the ITCMD. Among the legal strategies, living donation and the creation of a family holding company proved to be effective, although each one has its own particularities and must be applied according to the specific characteristics and objectives of each family. At the same time, the use of financial instruments such as life insurance and private pension plans, PGBL and VGBL, have proven to be effective in both preserving assets and transferring them. However, the results also point to the need for personalized planning, with the help of specialized professionals, to guarantee the effectiveness of the strategies adopted and compliance with constant legislative changes. This study contributes to the understanding of strategies for minimizing ITCMD in succession planning, providing information for families and professionals involved in this process.