The sale of a family business can leave you with more money than you wish to spend during your lifetime. The perfect opportunity to start estate planning so your heirs avoid having to pay a hefty inheritance tax bill!
"}},{"componentType":"testimonial","testimonialList":[{"authorInfo":{"authorName":"Jean-Philippe Bonte","image":{"altTextNL":"Jean Philippe Bonte","extension":"jpg","original":"https://assets.ing.com/m/1acc44cb5c9bb788/original/Jean-Philippe-Bonte.jpg","transformBaseUrl":"https://assets.ing.com/transform/f6e9819a-9f41-4953-901e-0a6ce3eb5499/Jean-Philippe-Bonte","type":"image","width":66},"jobTitle":"Expert Lead Family Business"},"testimonialText":{"body":"The sale of a family business can have consequences in terms of inheritance tax and thus also for your family."}},{"authorInfo":{"authorName":"Evelyn Van de Boel","image":{"extension":"jpeg","original":"https://assets.ing.com/m/df5fbc2500693ce/original/Evelyn-Van-de-Boel.jpeg","transformBaseUrl":"https://assets.ing.com/transform/eebf896a-e625-45bb-87f2-e680a1f77c4b/Evelyn-Van-de-Boel","type":"image","width":3024},"jobTitle":"Wealth Analysis & Planning Consultant"},"testimonialText":{"body":"That's why you need to start estate planning before you sell the family business. "}}]},{"componentType":"sectionTitle"},{"componentType":"paragraph","richBody":{"value":"Under certain conditions, your family business may be subject to a reduced inheritance tax rate (0% in Wallonia and 3% in Belgium’s other regions). This is not the case, however, if the shares are sold and exchanged for cash. Cash or a securities portfolio do not qualify for these advantageous rates, which explains why you need to start estate planning before you sell the family business.
Evelyn Van de Boel, Wealth Analysis & Planning Consultant, and Jean-Philippe Bonte, Expert Lead Family Business, discuss 3 valid options in further detail.
"}},{"componentType":"sectionTitle","title":"Estate planning for your children"},{"componentType":"paragraph","richBody":{"value":"The first solution is to consider a gift to your children. This can take the form of a gift by private bank transfer, albeit while respecting some simple rules.
In that case, there is no need for a notary, nor do you have to pay gift tax. Remember, however, that if the donor dies within 5 years of this gift (3 years in the Brussels-Capital Region), the gift will be added to the estate and the recipient(s) will have to pay inheritance tax on it.
You can also register a gift agreement at a later date and pay the gift tax when registering it (if the donor is ill, for example). In that case, the gift is exempt from inheritance tax. This solution is not possible in the event of the donor’s sudden death.
To avoid this risk, consider hiring a notary and paying gift tax. The very advantageous tax rate in each region: 3% in the Brussels-Capital Region and Flanders, 3.3% in Wallonia. Regardless of what happens next, you will not be required to pay inheritance tax. The older the donor (or the worse his health), the more this solution is recommended.
"}},{"componentType":"sectionTitle","title":"Do you prefer to retain control and/or the capital gains?"},{"componentType":"paragraph","richBody":{"value":"A gift is a gift, but it doesn’t necessarily mean giving up everything! You may not want to deprive yourself of the gains from the capital you gift to your children. You may also want to retain control of this capital to prevent your children from spending it too quickly. In that case, there are two options: the gift with a usufructuary right and the creation of a partnership.
The donee (beneficiary) receives the bare ownership of the capital whereas the donor retains the usufruct, i.e., the gains (interest, dividends, etc.), and remains responsible for managing the capital. A notarial deed is required, and gift tax applies.
This is a company without a legal personality. A partnership is set up for a fixed term and its articles of association can be private, guaranteeing discretion.
This has the advantage that the statutory manager (the donor, in principle), who cannot be removed from his post, retains control. This instrument facilitates the management of family assets and is often combined with a gift.
The partnership is subject to specific formalities in terms of registration and accounting. It must also hold a general meeting at least once a year.
"}},{"componentType":"paragraph","richBody":{"value":"Your children inherit from you, but so does your spouse, which explains the importance of estate planning for married couples.
Gifts between spouses
The seller of the company (the husband in our example) can first make a gift to his wife, as long as this does not encroach on the statutory reserve for his children.
This gift can be revoked in the event of divorce or the wife’s death. The assets revert to the donor in that case without being taxed. This type of gift is only possible for own property, i.e. not for joint owned or undivided property. Gift tax is due (except in the case of an unregistered bank gift), but the tax rate applied will be the same as for a gift to one’s children.
Contribution of personal assets to the community property
The seller of the company can also transmute the proceeds of the sale into community property, whether in an existing community or one to be created for this purpose. This contribution is made by means of a marriage contract.
Advantages: the spouse is entitled to half of the (untaxed) assets, and the contribution can be registered for a flat fixed fee of €50. Obviously, the notary fees and deed costs must be added to this amount.
However, if the other spouse (who did not contribute the assets) dies first, the contributing spouse may have to pay inheritance tax on the assets that he or she has contributed to the community property. This situation can be avoided by adding a resolutive condition relating to the contribution.
Residuary gift
There is a third option, called the ‘residuary gift’. This gift is made to the wife (first recipient), specifying that upon her death, the remainder of the gifted assets will go to the children (second recipients).
A notarial deed must be drawn up and gift tax paid at two stages: when the husband makes the gift to his wife (3 to 3.3%) and, in the event of the wife’s death, on the remaining assets when they pass from the father to the children (also 3 to 3.3%).
The wife can use the gifted assets as she sees fit but they must be carefully managed so any residuary assets can be easily identified when she dies.
"},"title":"Estate planning for your spouse"},{"componentType":"paragraph","richBody":{"value":"If you have not yet started estate planning, you should consider this interesting alternative: term death insurance to cover the amount of inheritance tax your heirs must pay.
The younger you are, the lower the premiums will be, as they increase with age. This insurance can be cancelled at any time, giving you a few years to mull things over before making a gift.
"},"title":"Inheritance tax insurance"},{"componentType":"sectionTitle","title":"You want advice about your options in terms of estate planning?"},{"componentType":"paragraph","richBody":{"value":"Contact your Private Banker.
"}},{"cards":[{"cardSize":"small","cardType":"service","componentType":"serviceCard","image":{"extension":"png","original":"https://assets.ing.com/m/6e6f3de4c512a23f/original/Fingerprint-phone-hand-spot.png","transformBaseUrl":"https://assets.ing.com/transform/4c8f79aa-f653-430e-bd15-7a94e7640b59/Fingerprint-phone-hand-spot","type":"image","width":615},"intro":"Contact your Private Banker via the ING Banking app!","link":{"url":"/en/private-banking/contact/contact-us-private-banking"},"title":"Already an ING Private Banking client?"},{"cardSize":"small","cardType":"service","componentType":"serviceCard","image":{"extension":"png","original":"https://assets.ing.com/m/7e02e75f5d5f534d/original/icon-Video-call-woman-spot.png","transformBaseUrl":"https://assets.ing.com/transform/67010ed0-a27d-4c66-b37c-a6bfb9a308c2/icon-Video-call-woman-spot","type":"image","width":847},"intro":"Leave us your details and we will get back to you!","link":{"url":"https://www.ing.be/en/individuals/services/contact-us-appointment?journey=invper&flow-step=call-me-back"},"title":"Want to find out more about Private Banking?"}],"componentType":"cards"}]},"hasMacro":false,"id":"6575e7b8-cfa3-4bcb-b477-1281f270cfd5","localeString":"en-GB","mainHeaderZone":{"backLink":{"textLink":{"text":"Our integrated expertise for entrepreneurs","url":"/en/private-banking/family-business"}},"componentType":"editorialHeader","coreHeader":{"headerImage":{"extension":"jpg","original":"https://assets.ing.com/m/6958828504d675e0/original/personal-company-director-1920.jpg","transformBaseUrl":"https://assets.ing.com/transform/35d373ca-a94d-428b-9ae8-bd293aae41d6/personal-company-director-1920","type":"image","width":1920},"title":"What to do with the money you get from the sale of your business?"},"date":"2025-03-25","readingTime":5},"publishDate":"2025-04-08T15:10:02.653+02:00"}}