Succession of Family Owned Estate and Manor

Sofie Pilborg & Patrick Skovsø Rasmussen

Student thesis: Master thesis


This thesis is written as part of the Master Course in Business Economics and Auditing, Cand.merc.aud., at Copenhagen Business School. The main goal for this thesis is to study and analyze the challenges of a generational succession of a castle estate in corporate form, where the shareholder has majority of the shares. The thesis will analyze and try to find the cheapest way to successfully handover the castle estate to a son when alive and by death. Present legislation, rulings, educational books etc., will be the base of this thesis. The theory is, throughout the thesis, used on fictional case company called Kauffmann Slots Gods A/S, where the shareholder is starting to consider how to make a generational succession of the family’ castle estate to his son, in the cheapest way possible. The first chapter will focus on some of the early considerations the shareholder needs to do before the generational succession can be carried out. The following chapter analyzes the different valuation methods that can be used to find a reliable valuation when no stock market exists, or similar trades have taken place. The next chapter focus on the different type of reconstruction to optimize the group structure and preparing the company for a generational succession. The following chapter explains the different models of generational succession. The various models include the option of handing over the company as a gift, or a partial gift and remuneration. It can be handed over using the regulations of fiscal succession. A sale of the shares in the company can be made or A/B-shares can be used for generational succession. Afterwards we will compare the models of generational succession and list how the models work, when the perspective of time, need of capital, taxation and the prospect of the company, are taken into consideration. The next chapter will describe the case if the majority shareholder passes away prior to the completion of the generational succession. The general rules for the estate of the deceased person will be described as well as the options available to the surviving spouse to retain undivided possession of the estate. The chapter addresses the regulations that apply when a person inherits from a deceased person, and the opportunies of completing the generation succession that have already been planned. At last the thesis will conclude which method will be the cheapest way to hand over the family castle estate to the son.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2019
Number of pages127