Succession planning is another important pillar of estate planning. The COVID-19 pandemic has taught us that we need to have a succession plan in place for our businesses. As a business owner, have you thought about who is going to take over and lead your family business if something happens to you? Who will you entrust to look after your business once you are no longer around? How will your business succeed if there is no one reliable at the helm? These are all questions that you need to think about, as a business owner in these uncertain times.
Consider this point: around 30% of family businesses survive into a second generation. Have you put any steps in place to guarantee that your family business will survive once you have passed away? You need to have a succession plan in place for your business.
What should you know about succession planning?
Succession planning guarantees that your business is prepared to support service continuity when essential staff members leave, and it does create an alignment between your business’s vision and your human resources. It also shows your employees that you care about them. Therefore, having a succession plan in place is essential for all business owners.
Learn more about trusts and succession planning:
Have you ever wondered if having a trust is important? Perhaps you are considering creating a trust during your lifetime? Let’s take a look at these useful points below.
- What are the benefits of establishing trusts? One advantage of creating a living (inter vivos) trust is succession planning. As a trust does survive the life of an individual, it guarantees continuity and allows for smooth succession.
- A trust provides for the creation of flexible succession arrangements.
- Trust assets are accessible always. This is convenient.
- The purpose of a trust is in essence for succession planning, providing you with a platform to guarantee that you can pass on your business to the next generation.
Would you like to have a living trust created? Make sure to consult with a Trust Specialist who can answer all your questions before you go ahead and create a trust. Setting up a trust is a decision that should not be made lightly, and it requires much thought.
As a Trust Specialist, I have the necessary skills and expertise to create a living trust that is suitable for your needs. I will explain all the details regarding estate planning, ensuring that you understand everything. I am available to meet with my clients face-to-face.
Neglecting to plan for the future means that you won’t have an estate plan in place when you really need it. Succession planning cannot be ignored or swept under the rug. I look forward to meeting with you and creating an estate plan that is right for you.
DR MERVIN MESSIAS
JD (Juris Doctor) / BA, LLB (Wits) / TEP (Trust & Estate Practitioner)
Make an appointment with my Executive Assistant, Jutleth Mkhonza. Email email@example.com or call +27 (0) 11 783 0108.