(For confidentiality, client types or cases are generalized, e.g., “private client, executive of Fortune 500 company.”)
Advising Founders on an Exit/Company Sale and Setting Up Family Office Structures
Establishment of family foundations to prepare a tax-efficient and strategically aligned sale structure. Supported the setup of three foundations (including drafting individual articles of association), coordinating with the foundation supervisory authority, and transferring company shares. Developed articles that accounted for a potential sale scenario, crafted the relevant transfer agreements, and created governance frameworks for using the foundations as family offices post-sale. Ongoing legal counsel for the foundations (organizing meetings, preparing minutes, maintaining a family register) and collaboration with external tax advisors on specific compliance issues. After the sale, devised a tax-efficient investment strategy and set up Family Office structures.
Advising a Branch of a Larger Family Enterprise
Establishing and managing an ongoing inheritance tax screening for a large family enterprise (evaluation of relief options and administration quota). Revised the wills of a shareholder branch to avoid latent risks of triggering hidden reserves. Additionally, identified opportunities for tax-efficient early inheritance (already significant private assets) among various children and implemented measures (family partnerships). The senior family member plans to contribute his remaining shares to a charitable foundation. GRÄFE Tax & Legal provides both tax and legal support for this process, including guidance on charitable law implications and making necessary amendments to the foundation’s charter in coordination with the foundation supervisory authority.
Senior Member of a Large Family Business Group
Comprehensive succession planning for a large family enterprise: analysis of inheritance tax relief under Sections 13a/b ErbStG across the entire group (over 100 companies). Considered restructuring the balance sheet to optimize inheritance tax and explored opportunities to place the group into a new family structure to avoid exit taxation. Drafted new succession and enduring power of attorney documents. Structured both private and investment assets, leveraging tax advantages for spouses (including marital property arrangements such as “Güterstandsschaukel” and housing concepts). Restructured international assets to avoid double taxation. Facilitated fair distribution within the family, including moderation and compensatory measures. Resolved unrecognized gift tax issues within the family.
High Net Worth Individual/Entrepreneur with a Single Family Office and Holding Company (including retained shares in an operating business), Approx. EUR 500 Million in Assets
Prepared emergency documents (entrepreneur’s will, powers of attorney,living wills) to balance personal and strategic considerations and inheritance tax opportunities, paying special attention to patchwork family situations. Planned potential structural changes to simplify the holding and corporate structure and to utilize inheritance tax relief on business assets. Designed measures for tax-efficient early inheritance, including the option of establishing one or more family foundations (to secure a functioning Family Office and asset management after the principal’s passing and to avoid exit taxation in the event of death). Implemented marital property arrangements to facilitate tax-free asset transfers between spouses. Provided ongoing support for various projects (structuring a classic car collection, acquiring assets abroad to avoid double taxation, cross-border entrepreneurial activities). Partly restructured Family Office cost-sharing to avert tax pitfalls. Took over ongoing tax advisory (tax returns, annual financial statements, VAT returns, payroll tax) for about ten entities (GmbHs, GmbH & Co. KGs, and partnerships) and six family members, setting up a cash management system and a tax compliance management system in close collaboration with the Single Family Office staff.
Entrepreneurial Family with Operating Company and Single Family Office (Enterprise Value Over EUR 4 Billion; Private Wealth Over EUR 70 Million in Real Estate, Securities, and Significant VC/PE Investments with High Growth Potential)
Prepared emergency documents (entrepreneur’s will, powers of attorney, living wills). Assisted the family (in collaboration with their Family Officer and current tax advisor) in avoiding a substantial inheritance tax event upon death. Implemented preventive will arrangements, as well as planning and executing the shielding of private assets and PE/VC shareholdings. Established a German family foundation as a new holding company and Single Family Office platform. Created suitable family governance guidelines and reviewed marital property issues. Evaluated the gradual, tax-optimized transfer of shares in the operating company, if necessary with usufruct structures. Performed inheritance tax analysis under Sections 13a/b ErbStG and assessed possible structural accounting measures to improve the initial position. Supported the next generation’s involvement in the operating business alongside Dr. Karin Ebel (ebel&team GmbH).
