A succession plan gives you leverage to control the leadership strategy of your company. An estate plan allows you to clarify the distribution and use of your hard-earned assets.
Both resources can provide critical support as you plan for your future. Coordinating these two aspects can give you the reassurance that both your personal and professional affairs will receive adequate attention.
Succession planning
Unexpected emergencies can create an immediate and critical need for changes to your company’s leadership. Failure to plan for these types of situations can leave leaders scrambling for solutions which can create serious disruptions in workflow and production. According to U.S. News, only a staggering 27% of advisors have a reliable action plan for the management of their companies in an emergency.
A well-written succession plan will address multiple angles of your company’s future, all tying back to its leadership. Strategies for replacing key players, training and developing future leaders, and navigating complex situations all have a place within your succession plan.
Estate planning
Your estate plan can guide your surviving family members about how to handle your personal and professional affairs. You can discuss the closure of your estate and its impact on your business. You can effectively distribute your assets and disclose your expectations for your beneficiaries.
Both estate and succession plans require a lot of time and careful strategizing. An attorney can help you determine which planning methods will provide optimal protection for your situation. Throughout your life, you will want to periodically review and update your plans to ensure they continue to reflect your intentions.