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Wealth Transfer Planning

Can I disinherit my child in Georgia?

Not completely. Children are entitled to a "forced share" under Georgian law, which is half of what they would have inherited if there were no will.

Is it better to gift property or leave it in a will?

Gifting transfers ownership immediately, while a will takes effect after death. Gifting can be better for tax planning or seeing heirs enjoy assets, but you lose control over the asset.

What happens to my business shares when I die?

They become part of your estate. However, if the company charter restricts share transfers, your heirs might receive monetary compensation instead of becoming partners.

Do I need a lawyer to write a will?

While not strictly mandatory, a lawyer ensures the will meets all formal requirements (notarization) and doesn't violate forced share rules, preventing future disputes.

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Wealth Transfer Planning: Continuity of Capital Across Generations

Wealth Transfer Planning is much more than simply writing a will. It is a comprehensive strategy that ensures the safe and effective transition of family capital, business, and financial assets to subsequent generations. In Georgia, where family businesses make up a significant part of the economy, proper succession planning is critical for business survival and avoiding family conflicts. Often, assets left without a plan become the cause of disputes, lawsuits, and bankruptcy after the owner's death.

This service involves structuring assets during one's lifetime to minimize taxes and administrative costs. It also includes preparing heirs for property management. Legal.ge offers access to highly qualified lawyers who will help you create a "roadmap" for your wealth transfer, whether through gifting, wills, corporate reorganization, or other legal instruments.

What Does Wealth Transfer Planning Cover?

Experts on Legal.ge offer a multifaceted approach:

  • Family Business Succession: Amending charters and signing partner agreements to determine who will manage the business after the founder's death (heirs or professional managers).
  • Gifting Strategies: Gradual transfer of assets to children during one's lifetime, which reduces the risk of future disputes and ensures the heirs' financial independence.
  • Liquidity Planning: Ensuring that heirs have sufficient cash funds (e.g., through insurance) to cover debts or taxes, so they don't have to sell real estate urgently.
  • Wills and Inheritance Contracts: Drafting documents that accurately reflect your wishes and eliminate misunderstandings.
  • Philanthropic Goals: Creating charitable foundations or directing part of the property towards public causes.

Common Scenarios and Real-World Examples

Wealth transfer is relevant in many situations:

  • Management vs. Ownership: A parent wants company shares to be distributed equally among three children, but management rights to be held only by the child actively involved in the business. This is regulated by corporate documents.
  • Second Marriage: An owner wants to ensure the financial stability of their spouse but simultaneously guarantee children from a first marriage that the property will eventually pass to them.
  • Protecting Assets from Squandering: An heir is still young or lacks financial management experience. A fiduciary management structure is created where they receive income in installments.

Georgian Legal Framework

Wealth transfer is regulated by various legal acts:

Civil Code (Inheritance Law): Defines the concept of the forced share. In Georgia, children, parents, and spouses have a right to a forced share (half of what they would receive by law), regardless of the will. This factor must be considered during planning so the will does not become contested.

Law on Entrepreneurs: Regulates the transfer of shares. An LLC charter can include restrictions on transferring shares by inheritance (e.g., requiring partners' consent), which necessitates pre-planning for compensation mechanisms.

Tax Code: Regulates taxation of gifts and inheritance (see Estate Tax Planning).

Step-by-Step Service Process

Working with a lawyer on Legal.ge includes:

  1. Inventory: Listing all assets (real estate, business, investments) and liabilities.
  2. Family Dynamics Analysis: Assessing the needs and capabilities of heirs.
  3. Plan Creation: Selecting optimal instruments (will, gift, corporate reorganization).
  4. Documentation Execution: Preparing legal documents and notarizing them.
  5. Periodic Review: Updating the plan upon changes in legislation or family circumstances.

Why Choose Legal.ge?

Wealth transfer is not just about money; it is about preserving your legacy and values. Poor planning can lead to family rifts and business collapse. Legal.ge offers a holistic approach, considering legal, emotional, and tax aspects. Ensure the continuation of your success story — find an advisor on Legal.ge.

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