Why is timely and comprehensive succession planning so important?
Planning one’s own estate succession is an issue that everyone should address sooner rather than later. The generational transition is inevitable. Failing to actively plan for it typically results in the estate being distributed according to the law of intestacy, which—from the testator’s perspective—usually leads to random outcomes that do not align with their actual objectives.
Succession planning is not a single legal act, but rather a coordinated process involving several family, legal, and tax-related decisions. Typically, these decisions concern maintaining control, ensuring the financial security of the family and immediate relatives, avoiding intra-family conflicts, involving the next generation at an early stage, and tax planning.
The goal of structured and comprehensive succession planning is to align the various objectives of the testator and their family and to ensure that these objectives are achieved. This article presents the three key levels of action as well as a structured, five-phase approach.
