A community of heirs is created following a person's death if there are at least two legitimate, testamentary or necessary heirs. During the lifetime of a community of heirs, Slovenian law requires the heirs to decide jointly and unanimously on the use, management and disposition of the assets. Since it is sometimes difficult for all heirs to reach a consensus, we question the wisdom of adhering to the concept of joint assets. The community of heirs lasts until the division, which may take place in probate proceedings.
When the subject of inheritance is a protected farm, it is governed by a special law – the Inheritance of Agricultural Holdings Act (ZDKG), which prescribes the criteria for determining the most appropriate successor to the farm, with a view to avoid the farm becoming fragmented and ensure single management. If no heir exists in the community of heirs who is suitable for managing the protected farm, the provisions of the Inheritance Act (ZD) apply. By contrast, the Companies Act (ZGD-1) does not contain similar criteria for the acquisition of a company or of inherited business shares, despite it being difficult for a community of heirs to reach an agreement on ordinary and extraordinary transactions. This makes it difficult, if not impossible, to ensure business continuity and maintain economic performance.
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