The Importance of Succession Planning in 2024
- Piva Advogados
- Jul 27, 2024
- 2 min read
With the movements in the legislature, 2024 will be a crucial year for those who want to plan the succession of their estate in advance. Potential changes in the civil and tax spheres could make postponing decisions a source of unwanted results and high costs.
One of the important changes is the revision of the Civil Code, which could have a direct impact on the succession of spouses. In the current scenario, when one of the spouses dies, the estate can be divided between the children and the surviving spouse. With the new proposal, the spouse no longer competes with the children and loses the status of necessary heir. It is therefore essential to look for alternatives, such as private pension plans and wills, to ensure the protection of the surviving spouse.
Impact of the Tax Reform
The Tax Reform, approved with Constitutional Amendment 132/2023, will bring significant changes to ITCMD, the tax on inheritances and donations. The requirement for progressive rates, i.e. according to the value of the estate, could increase the tax burden in states such as São Paulo, where the current single rate is 4%, but could reach 16%. In addition, the ITCMD calculation base will be adjusted to include the market value of assets and liabilities, increasing the cost of future successions.
PLP 108/2024 also provides for ITCMD to be levied on financial contributions to private pension plans, excluding only a few specific cases. The constitutionality of this measure is still pending judgment by the Supreme Court.
These legislative changes are still in progress, but it's already time to prepare. Planning ahead for the succession of your assets can avoid unpleasant surprises and additional costs.
Contact us to study the best alternatives and ensure the efficient organization of your family assets.
Don't wait for changes to come into force to act. The time to decide on your legacy is now!
References:
Resolução do Senado Federal no. 9/1992.
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