Management-in-succession allows a firm to continue after the death of its owner. There will be a new type of taxpayer, i.e. an enterprise in succession.
A new law called the Management-in-Succession Act helps sole traders in conscious succession planning. But even if they do not plan their succession, their business will be able to survive for some time after their death. A gift and inheritance tax exemption has been introduced to provide an incentive for acquiring such enterprises. However, the law does not solve all the problems. Solutions allowing successors to directly take over the deceased’s business are yet to be had. For now, the law has merely bought them some time for decisions and formalities.
For the full article by our attorney-at-law Anna Skowron, see here.