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A family settlement agreement is another route to succession planning that can help a family avoid future property disagreements. It is a comprehensive contract entered into between the members of a family whereby they mutually agree on how to distribute the family wealth between themselves.
The assets (both movable and immovable) under consideration must be jointly owned by the family; individual properties are not included in the agreement. Once the members agree upon the details, the agreement is signed by all of them and then registered. Once that's done, unless cancelled, the existing agreement cannot be replaced by a new one. A family settlement is ideally suited for cases where a family owns several assets with complex ownership structures such as cross-holdings in companies. In such a case, the family can arrive at an agreement on each member’s share in the different assets and on who exercises operational control.
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