Succession planning is one of those tasks that’s easy to put off. It can seem complex, emotional, and overwhelming—and it often feels like there’s always more time to deal with it later. However, when it comes to passing on your business or assets, the simple truth is this: just make a start.
Too often, people delay succession planning, bogged down by too many meetings or endless discussions without taking meaningful action. Waiting too long can lead to significant pitfalls, including disputes, uncertainty, and, in the worst cases, costly and stressful litigation within families. Starting earlier not only provides clarity and security but also minimises the risk of family conflicts after you’re gone.
Why Start Now?
- Avoiding Future Disputes: The more you plan and prepare while you’re alive, the less chance there is for misunderstandings or disagreements among your successors. Leaving things unresolved can result in trust or estate disputes, which can strain family relationships and erode the legacy you’ve worked so hard to build.
- Ensuring Your Wishes Are Clear: Succession planning allows you to clearly outline your wishes, whether that involves passing on a family business, dividing assets fairly, or planning for specific charitable contributions. The sooner you put your plan in writing, the more confidence you and your family can have in its execution.
- Reducing Emotional and Financial Stress: Without a clear succession plan, your family or business partners could face significant stress, both emotionally and financially, as they try to piece together what you would have wanted. Proactively addressing these decisions can provide peace of mind for everyone involved.
- Navigating Complexities: Succession planning often involves intricate details, such as legal and financial structures, tax implications, and ensuring the readiness of your chosen successors. Starting early gives you the time to work through these complexities without pressure or rushed decisions.
How to Get Started
Making a start doesn’t mean you need to figure everything out all at once. Here are some simple steps to help you begin:
- Consult a Professional: Talk to a lawyer or advisor who specialises in succession planning. They can guide you through the process and help you identify key areas to address.
- Set Clear Goals: Decide what’s most important to you—whether that’s preserving your business, ensuring fairness among family members, or supporting a specific cause.
- Communicate Openly: Share your intentions with your family or key stakeholders. Early and transparent conversations can prevent misunderstandings later.
- Create a Timeline: Break the process into manageable steps with clear deadlines. This helps ensure progress is made without feeling overwhelmed.
- Review and Update: Remember, succession planning isn’t a one-time task. Life changes, and your plan should be revisited regularly to stay relevant.
Why Timely Planning Matters
Procrastinating on succession planning can have serious consequences. In New Zealand, we’ve seen a rise in trust and estate litigation, often because key decisions weren’t made early enough. By taking action now, you’re not only safeguarding your assets but also preserving harmony and clarity for your loved ones.
The key takeaway is simple: don’t wait. Succession planning is a gift to yourself, your family, and your business. The earlier you start, the smoother the transition will be when the time comes.
If you’d like to begin planning or have questions about where to start, reach out to us, we can guide you through the process. Your future self—and your family—will thank you.
