Introduction
Succession planning is a process that helps you plan for the future of your business, and the wellbeing of your family. But that’s just the beginning.
Succession planning isn’t something you can do with a simple process or mind map, it requires an advisor who knows your industry inside out. This is why its highly recommend you hire someone with experience in estate planning, corporate law, tax law, accounting and wealth management as part of their practice area (these are also called “concurrent practices”).
Where to start
Everyone’s situation is unique and depends on the size of their estate. It’s important to have a plan, but also to be patient and let the process unfold gradually.
Contact a financial professional for advice about managing your assets and estate planning options.
A few key questions to ask:
- What are some considerations I should take into account when creating an estate plan?
- How do you think this will affect me financially?
- How do we go about making sure that my wishes are carried out after I pass away?
Succession should be an ongoing process that starts now.
The right staff
Succession planning is not just about passing on assets, it’s about passing on values and a legacy. It is also about passing on the family name, so you can continue to be proud of your ancestors’ accomplishments. You need to start thinking ahead in order to ensure that your business continues after you are gone.
You need to find the right team of professionals to help you with your estate planning. The team should include a lawyer, an accountant and a financial advisor. It may also include life insurance agents and financial planners or trust officers.
A lawyer can help create your living trust, which manages your property after death; make sure it is in compliance with state laws; draft wills that reflect your wishes for distribution of assets upon death; draft powers of attorney (which allow someone else to make decisions for you if necessary); help sort out guardianships for minors and children; prepare prenuptial agreements if necessary; and provide advice on any issues relating to probate or non-probate assets (such as jointly owned property).
An accountant can assist with all tax matters related to estate planning, including preparation of estimated taxes during the year following death. In addition, he or she can review the accounting records prepared by others such as investment brokers or other advisers so that proper asset values will be assigned when calculating basis levels at death
Plan for the unexpected
You might have an emergency fund for yourself and your family. You might even have a plan for nasty surprises. But do you have an emergency plan for your business?
Life’s unexpected events can happen to anyone, whether or not they’re prepared for them. It’s important to give some thought to what happens if one of those events affects your business; this will help ensure that everything continues running smoothly in the event of such circumstances.
Because everyone’s situation is different and life throws us many curveballs, planning is key when it comes to providing for our loved ones.
Succession planning is the process of preparing for an orderly transition of the assets you have accumulated over your lifetime. As such, it’s a long-term process that starts with getting your affairs in order today—including estate planning (e.g., wills), retirement plans (e.g., IRAs), and financial accounts (e.g., bank accounts).
Succession planning also includes identifying possible successors to manage these assets after you die or become incapacitated; considering transfer options that could be used if you were no longer able to manage those assets yourself; and identifying other factors that may affect this transition (e.g., potential tax implications).
Succession planning isn’t just about money: though it does plays a big role in your decisions, other considerations include how much time each successor will devote to managing those assets, how well they work together as a team and individually with others who might be involved in making these decisions (such as lawyers or tax professionals), possible liability issues related to managing those assets after someone dies or becomes incapacitated — and anything else that may impact how well each successor manages them on behalf of their loved ones’ best interests.
Conclusion
We hope this has helped you understand the importance of having a succession plan in place. It’s important to remember that everyone’s situation is different and there are many factors to consider when it comes time to decide who will carry out your wishes after death.
You should work with an experienced estate planning team who can help guide you through these decisions so that they have the best chance at being carried out as planned.