“We observe, in every such inheritance case, how inheritance battles unfold,” says Ekaterina Markova, Head of the Family and Inheritance Law Department.

Over the past year and a half, several major Russian businessmen have passed away: Boris Aleksandrov, President of Rosagrokomplex and co-founder of a glazed curd snack brand; Vladimir Khristov, Chairman of the Board of Directors of PJSC Susumanzoloto; Dmitry Bosov, Chairman of the Board of Directors of Alltech; and Andrey Trubnikov, owner of the Natura Siberica brand. The reasons and circumstances differ, but there is a common pattern: the sudden death of the owner of a large fortune and the ensuing battle for the inheritance, which may take the form of a hard-fought confrontation with an unpredictable outcome.

“Without question, the culture of inheritance in Russia is still quite low. Virtually every major inheritance case ends up in court: between heirs, between business partners. This is the main pain point of our business, and I believe it is time to revive the culture of inheritance in Russia,” adds Ekaterina Markova.

According to the Skolkovo Wealth and Philanthropy Management Center, only 18% of Russian entrepreneurs believe they have a succession plan. The remaining 80% have no inheritance concept at all. Inheritance traditions were lost in the early 20th century, and different mechanisms operated in the Soviet Union. And now, in the history of modern Russia, it is essentially the first generation of businessmen who must decide how to dispose of the wealth they have accumulated.

“For your business — what you have built over the course of your life — to continue living, a number of steps need to be taken,” says Dmitry Ageev, Executive Director of the Skolkovo Wealth and Philanthropy Management Center.

A sad example of the negative consequences of the lack of a succession plan is the situation surrounding the sudden death of Andrey Trubnikov, the founder of the Natura Siberica cosmetics brand. For more on inheritance raiding, a paralysed business process and massive potential losses, watch the full report by Russia 24 here.

We are convinced that unpleasant consequences and prolonged litigation in the transfer of capital through inheritance can be avoided. Our specialists have been working on establishing a predictable inheritance order for more than 10 years.

Please contact us, and we will be happy to assist you.