What is the difference between Succession Planning and Estate Planning?

For many people, conversations about their Will and succession planning are easy to put off, but many problems (costly legal disputes and tax bills, to name just two) can be minimised with disciplined forward planning.

Succession planning is the broad process of considering how your wealth will be transferred, either during your lifetime or after death. Tax planning, your readiness to hand over control, the ability of the next generation to step up, and your possible pension entitlements, are all relevant factors.

Estate planning looks at your wealth and considers how control and ownership should pass on your death.

Estate planning comprises: –

– a Will;

– Powers of Attorney;

– Death Benefit Nominations (for superannuation benefits).

It might also involve Deeds of Succession of Trustee or Appointor for family trusts, amendments to existing Trust Deeds or Partnership documents, and/or a Memorandum of Wishes or Family Agreement (being high level documents that bring all of the parts of the estate plan together).

Where do I start?

There are four key questions – what you own, what you control, who you want to leave it to, and how should they receive it.

This is the first in a series of 6 articles on farm succession planning that aim to help you start the process to ensure an efficient transition of your wealth to your intended beneficiaries.

If you have any questions or if you would like to start the planning process, contact Trent McGregor today in Bendigo on 5434 6666 or Castlemaine on 5472 1588.

Trent McGregor

Wills & Estate Planning Lawyer