How to Ensure the Continuity of Rural Businesses in Times of Grief

The death of a loved one is always a time of great pain and reflection, especially when it involves someone whose absence affects not only the emotional side, but also the continuity of the family's livelihood, as in the case of a rural producer. It is natural that, in the midst of mourning, doubts and concerns arise about how to move forward. That's why it's essential to approach the subject with empathy and clarity, understanding that, despite the sadness, there are procedures that need to be carried out to ensure that a lifetime's work is not lost.

First steps:

1. Death documentation: In order to avoid future complications, it is essential to provide the death certificate as soon as possible and register it at the registry office. This initial step is essential to allow the next steps to take place without additional obstacles.

2. Communication to Public Bodies: The notary's office, when registering the death, usually automatically notifies bodies such as the Internal Revenue Service and the INSS. If this communication is not made, heirs may unknowingly continue to receive benefits that are no longer theirs, which could lead to legal problems in the future, with civil and criminal liability for those who did not communicate the death in order to continue receiving the benefit on behalf of the “de cujus”. Therefore, it is important to make sure that the communication has been made, and if it has not, to do so in order to avoid informing the social security agency, which even has the power to cease payment of the benefit received until then.

Once the death has been registered, the inheritance procedure begins. But what exactly is this inheritance procedure? What does the term inventory mean?

The inheritance procedure involves the entire process of transferring the deceased's estate to their heirs. It is through the succession acts that children receive the assets left by their deceased parents, for example; all of this takes place within a process known as inventory or division of assets. This can be done judicially or extrajudicially. Out-of-court probate is quicker and can be completed in around 90 days. However, it requires all heirs to be of legal age, capable and in agreement. Judicial probate, on the other hand, occurs when there are disagreements between the heirs or minors involved. In either case, a lawyer must be involved, as required by law.

In the probate process, the deceased's assets and liabilities will be surveyed, i.e. all movable and immovable property, bank balances, financial investments and debts will be listed.

After this survey, the assets will be evaluated and listed in order to first pay off any debts that may have existed in the name of the deceased. It should be noted that heirs do not inherit debts, which are paid exclusively from the estate left to them. Once the debts have been paid, the remainder of the estate will be shared between the heirs.

The impact on the family business

For rural producers, the inventory is even more important, as failure to regularize assets can paralyze the business. Without this, it is impossible to obtain rural credit or offer guarantees, putting at risk the continuity of agricultural production, which is often the livelihood of the entire family.

It is important to note that, even during probate, it is possible to guarantee the continuity of production through an executor, who is appointed to manage the deceased's assets until the process is completed. This executor can, for example, apply for permits so that rural operations can continue as normal.

How to Proceed During the Inventory?

• Appointment of an Inventory Agent: The inventory agent will be responsible for administering the assets until the inventory is finalized. They can apply for permits to ensure the continuity of operations, such as agricultural production, during this period.

• Commodities and leases: If any heirs or third parties want to use the land, it will be necessary to formalize lending or leasing contracts, avoiding legal problems and enabling the tax and commercial regularization of production.

• Succession planning: The Role of Rural Holdings

An efficient alternative to prevent complications in the future is the creation of family holding companies. Holding companies are legal structures that allow succession planning to be carried out in advance. In the case of rural producers, setting up a holding company makes it possible to:

• Centralization and administration of assets: Facilitating the management and operation of properties and avoiding business fragmentation.

• Tax savings: By anticipating succession and formalizing asset management, it is possible to reduce the tax burden on inheritances and donations.

• Legal certainty: With a holding company, it is possible to guarantee that the transition of assets and responsibilities is carried out in an orderly manner and within legal parameters, preserving family assets and ensuring business continuity.

We know that in times of loss, emotions run high. Family conflicts can arise, especially when assets and businesses are involved. That's why speedy probate and careful mediation can help prevent unnecessary stress. A specialized lawyer can act as a mediator, ensuring that the process runs smoothly and that all family members are heard and respected.

In addition to being a legal obligation, carrying out an inventory is an essential step in protecting the future of the business and ensuring that the loved one's legacy continues to benefit the family. With the support of an experienced lawyer, this process can be conducted in a more humane way, allowing the family to focus on what really matters: taking care of each other and preserving the ties that bind them.