Successful Succession Planning To Your Wealth
Succession planning for many, remains something of a frowned on process and a lot of wealthy families choose to ignore the question entirely. Yet over the next few decades it is estimated that £1 trillion will pass down from generation to generation.
If you decide to postpone or you don’t do it you could risk putting the proceeds of your life’s work and, potentially, family relationships at risk. At Montagu Mayer, our knowledge has shown that, with intelligence and planning, assigning wealth to the next generation – whether you decide to choose your family, charities or both – can actually be an effortless, continuous and fulfilling journey.
The Montagu Mayer guide to wealth succession shows that planning, intelligence and arrangement are essential to creating a enduring legacy.
It is a minefield and there is no ‘off the shelf’ solution. Everyone’s needs and objectives will be unique and there is much to consider, including:
- When is the right time?
- Who gets involved?
- How much do you give?
- Who to give to?
- What happens after?
In today’s society, families have evolved with second and third partners now much more common, which often means more stepchildren and step-grandchildren to consider.
There is an ancient Chinese proverb that states 富不过三代 or ‘Fu bu guo san dai’, which translates as ‘wealth does not sustain beyond three generations’. It is sometimes expressed in English as ‘rags to riches and back again in three generations’.
Unfortunately, a lot of people believe that this is because of investments, market fluctuations or more than likely tax. However, the reality is that it mainly comes down to ill preparation and a lack of trust or communication between family members.
Montagu Mayer recognise that successful succession planning requires a tailored strategy. Our experts support clients through the whole process – providing a totally bespoke service and all personal aspects of it.
Using our extensive knowledge, we have identified the following steps to successful succession:
- Always have a clear vision for your finances and share it with your loved ones. The more thorough you are, the easier it will be to tailor a plan for you.
- Think about what you want to happen. For most, its main thing is to provide a safe and reliable legacy for your family.
- Only by thinking and speaking with your family can you be aware of any potential upset and prepare the beneficiaries for the future.
- Everyone is unique. Consider your own outlook and you will be better able to see the impact of these views and plan accordingly.
- Have empathy with the next generation. If they are poorly prepared, they will find the responsibilities of managing matters in the future incredibly difficult to fulfil .
- A crux of any plan is to preserve wealth and mitigate future risks. Learning about the individual challenges facing each generation and understanding them will help to develop the skills that the different generations need for their stage.
- Think of each generation individually rather than assuming they are the same – they will have had different experiences, their psychology and their personal abilities and challenges.
Planning your wealth succession with Montagu Mayer can help ensure that your wealth is used as you intend during your lifetime and after death. It may also offer some advantages in the future, for example if you are self-employed or get divorced, or if you have an estranged family.
We can also help benefit your family or beneficiaries after your death as we can help remove the requirements of probate, giving you peace of mind during an emotional time for your loved ones.
The focus of Montagu Mayer is you; the services we offer, the way we work down to the smallest detail are aimed at helping you empower your money to enjoy life and provide the future you and your loved ones dream of.
All advice is fully regulated with clear, transparent charging structures, full commission disclosure and a variety of Service Level Agreements to suit your budget.
And of course, all of that is backed up by complete regulation everywhere we operate, giving you a total Montagu Mayer experience wherever you choose to move to.
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