How to use professional connections to do succession planning
By Mark Battersby, 9 Jun 16
In the first of a series looking at wealth and succession planning from a legal perspective, Edward Stone, partner at Irwin Mitchell Private Wealth, explains how lawyers and investment advisers can work together to ensure their clients’ wealth and succession objectives are fully met.
It’s not all about tax
Mitigating against tax may however be only one of the family’s priorities and not always the most important. Although every culture has an equivalent expression for ‘clogs to clogs in three generations’, taxation is rarely given as the main cause for the erosion of the family’s wealth and more often is due to a failure to plan properly and early than any other cause.
Every family is different and will have its own priorities and values, whether cultural (primogeniture or differing treatment of male and female heirs) or economic due to the stage the family is at (wealth creation or custodianship).
These will all need to be taken into account for any wealth planning to be successful and avoid costly disputes which can too often permanently tear a family apart. Communication of any plan within the family is also critical so family members know what to expect and what is expected of them.
Any planning must be able to adapt to changing circumstances, whether the introduction of new tax laws, family members relocating to other countries where the tax and succession rules are very different, additions to the family (spouses and step-children) as well as losses through death or divorce. The ability to adapt is a cornerstone of sound financial planning and any wealth structuring should be flexible and simplicity preferred to over-complication.
Tags: HMRC | Irwin Mitchell
