Transfer of Assets

In a transfer agreement, the transfer of assets from the transferor to the transferee is carried out during their lifetime.

As a rule, parents want to pass on part of their assets to their children during their lifetime and at the same time secure themselves or other children.

Transfer agreements are therefore particularly frequently concluded in the context of corporate succession and the transfer of real estate. However, the transfer of valuable brands, patents, designs, licenses, works of art or other valuables is also conceivable.

Consideration

Note: In contrast to a donation, the transfer agreement provides for a consideration from the transferee.

Common considerations in transfer agreements are:

• Pension payments to the transferor
• Compensation payments for, e.g., siblings not taken into account
• Care and support services if the transferor needs them
• Support payments in the event of a financial emergency of the transferor
• Usufruct rights of the transferor
• A right of residence of the transferor

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Securing

Especially when transferring companies or real estate, a very large part of the transferor’s assets is often transferred. This often happens at a time when the transferor still has half or a third of their life ahead of them.

Nobody knows how the global economy, the political situation or the old-age pensions will actually develop. In Austria, too, wars in neighboring countries and the pandemic in 2020 / 2021 have shown how quickly a seemingly secure situation can deteriorate.

Likewise, the individual health of the transferor is not foreseeable. Therefore, on the one hand, the transferor’s need for care must be secured in the event that it cannot be paid for with the transferor’s remaining assets or with state support. On the other hand, care should be taken to ensure that state recourse is excluded in the event of care.

A good transfer agreement also considers such scenarios. It is therefore particularly important that the modalities of a transfer are precisely and proactively regulated in a transfer agreement.

Parallel Agreements

A transfer agreement often triggers further agreements. If there are several compulsory heirs, but only one compulsory heir receives the company or the only property, then compensation payments and waivers of compulsory portions are usually agreed in order to prevent inheritance disputes later on.