The intention of Succession Planning is to prepare the next generation to assume leadership and responsibility of family wealth and family business ventures. It is also a positive confrontation of the current leading generation, regarding the past, and what legacy was created to be carried forward.
Many families avoid this process for a variety of reasons. It is not an easy process, but a necessary one. Recently a client recounted to me, he awakened in the middle of the night and realized his shareholder agreement needed to be amended. He told me, “If I were to die right now, my kids would get nothing.” Many families avoid conversations about money and wealth. There are many uncomfortable emotions that accompany these discussions. However, when family leaders initiate succession conversations, the conflicts they encounter, if traversed well, can bring clarity and structure. I like to point out structure is order that brings calm. Without structure, anxiety and avoidance behaviors often perpetuating difficulties.
Simply put, Succession Planning consists of conversations (family meetings) and training of the next generation in money and wealth skills. And, if a business is involved, ownership and management skills are considered and plans are made to develop these capabilities.
