The article “Probable increase in ITCMD leads to the need for succession planning”, by Leonardo Cotta Pereira, Head of the Corporate area at Marcos Martins Advogados, is featured in the Estadão newspaper.
The lawyer comments that, if the current Tax Reform proposal is approved, there is a serious risk of an increase in the rate of the Causa Mortis and Donation Transfer Tax (ITCMD), which currently varies between 4% and 8%.
According to the expert, given the risk of an increase in the ITCMD, it is advantageous for patriarchs and matriarchs to carry out succession planning while they are still alive, taking advantage of the provisions of the current legislation and enjoying a lower tax rate. In this way, they can avoid family conflicts, legal disputes and the dilapidation of assets due to hasty or poorly planned decisions.
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