The legal landscape is littered with stories of fortunes lost and/or families torn apart – particularly where a farm or a family business is involved – as a direct result of inadequate succession planning.
But even for those of us who live in more humble circumstances, good succession planning is really important.
A classic example involves the family home.
Typically, when Mum and Dad pass on, the house is sold and the money is split between the kids. Quite often, one of the children wants to purchase the house from the estate, but doesn’t have enough money to do so (even if they use their share of the residuary estate).
Tensions can begin to rise between the children – tensions which can become especially acute if the child in question does not yet have a home of their own (an increasingly common situation).
But there are potential solutions – especially if advice is sought while Mum and Dad are still alive.
Succession planning isn’t about money – it’s about the family legacy that you leave behind.