PERU Law and Practice Contributed by: Percy Castle, Violeta Moncada, Angel Quispe and Dayana Evangelista, Casahierro Abogados
4.2 Succession Planning One of the most commonly used succession planning structures for family-owned businesses in Peru is the establishment of a family holding company, through which business assets and equity interests are con - solidated under a parent company. This structure facilitates the centralised management of the family’s wealth, streamlines the ownership of shareholdings and simplifies the intergenerational transfer of owner - ship and control. Holding structures are typically complemented by suc - cession planning instruments, such as trust, wills and lifetime forced heirship advances ( anticipos de legíti- ma ), as well as corporate governance mechanisms, including tailored articles of association, shareholders’ agreements and family protocols. These instruments enable families to define, in advance and on a gradual basis, the process for the intergenerational transfer of ownership and control of the family business, while ensuring business continuity and minimising the risk of family disputes. 4.3 Transfer of Partial Interest In Peru, when a partial interest in an entity is trans - ferred – either during lifetime or at death – the valu - ation for tax purposes is generally based on fair market value without explicit statutory recognition of discounts for lack of marketability or lack of control. SUNAT applies the “market value” principle, and while international valuation practices may consider such discounts, Peruvian tax law does not expressly pro - vide for them.
These disputes usually take the form of the inclusion or exclusion of heirs, challenges to wills, proceed - ings for division and partition of assets, challenges to transfers made during the decedent’s lifetime, and corporate disputes related to the management, valua - tion, or control of family businesses. For the most part, such disputes are handled before the civil courts and, in the case of family businesses, may also give rise to arbitrations or corporate disputes. 5.2 Mechanism for Compensation Wealth and succession disputes are mainly governed by the general rules of civil liability set forth in the Civil Code. The mechanisms of compensation seek to restore the injured party to the position in which it would have been had the breach or wrongful act not occurred, through compensation for the damages effectively suffered. In the case of trusts and other wealth structures, disputes are resolved in accord - ance with the general rules of contractual or non- contractual liability, as applicable. Compensable damages mainly include actual dam - ages, loss of profits and moral damages, provided that there is a causal link between the imputed con - duct and the harm caused. In succession matters, in addition to actions aimed at obtaining the restitution or partition of hereditary assets, it is possible to claim compensation for damages arising from fraudulent acts, concealment, or improper disposition of assets belonging to the hereditary estate. In general terms, compensation in wealth disputes is obtained through proceedings aimed at restoring the assets improperly affected, repairing the damaged estate, declaring the nullity or ineffectiveness of legal acts and, where appropriate, ordering the payment of compensation. 6. Roles and Responsibilities of Fiduciaries 6.1 Prevalence of Corporate Fiduciaries Pursuant to the General Law of the Financial and Insurance System (Law No. 26702), only certain authorised entities may act as trustees ( fiduciaries ) in Peru. These include financial institutions, licensed
5. Wealth Disputes 5.1 Trends Driving Disputes
In Peru, wealth disputes are mainly driven by suc - cession conflicts due to the prevalence of intestate successions, the concentration of family wealth in real estate, and the persistent problem of informality or lack of registry regularisation. Likewise, the trans - fer of control and management of family businesses constitutes an increasingly relevant source of disputes among members of the same family.
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