Succession refers to how wealth is transferred from one person to another, whether living or deceased. As much as this is not a topic most people are comfortable dealing with, it is vital to work on it and have a plan in the event of an untimely demise.
To effectively deal with succession planning, there needs to have:
A will that describes how you desire to have your estate executed posthumously.
Powers of attorney which helps in executing the will
Benefit nominations are the people or organizations you wish to benefit from your estate.
This process begins by declaring your portfolio through an attorney, describing what you own and who ought to benefit from your estate and the means to which they would receive it. It is also good to deal with a financial planner who would help ascertain assets, liabilities, and the tax demands with succession. In working with professionals, potential pitfalls such as family struggles are occasioned by the lack of sequence, tax liabilities, court costs, and lengthy litigation on the estate.
Succession for a legacy
An endless succession should see through the author’s vision and possibly run through successive generations. However, there has been evidence that if poorly implemented, as much as 70% of successions fail in the first generation. Succession failure can be avoided by having strong family governance structures. Strong family governance structures help have a mechanism to sort disputes in-house before they escalate. Also, working with a professional estate agent and financial planner who can guide you through the process to avoid pitfalls along the way would help. The financial planner ensures as much of the estate goes to the desired beneficiaries.