The following article, written by Connie Mason Michaelis for the Topeka Capital-Journal and published on 2/20/24, may seem obvious. Why would you create a succession plan but not communicate it to key family members? Well, it happens, so whether you are creating a succession plan or simply working on your estate plan, read why sharing it with your loved one is critical.
“There are things we are willing to talk about, things we don’t easily talk about and things we won’t talk about.
Each of us has a tolerance for being transparent. So, we have a variety of topics that fit into our comfort zone and probably a lot more that are taboo.
After asking Google what are the most difficult topics for families to talk about, I narrowed it down to death and money. These topics are critical as you get older. But so many families have real trauma surrounding these subjects.
I had this idea of addressing these topics in the same manner a company might deal with succession planning. I understand that any good company gives time and energy to this project to protect the future of their business success.
Many of us have done last wills and estate planning, but we still must communicate our wishes to our families so that when the time comes, everyone understands the plan.
A quick look at the meaning of succession planning reads like this: A succession plan outlines an organization’s strategic process to ensure a smooth transition of leadership and key roles within the company, particularly during times of change or departure of key personnel.
It involves identifying and developing internal talent to fill critical positions, establishing timelines for transition and implementing strategies to mitigate risks associated with leadership gaps.
What if it were rewritten to explain the importance of a family succession plan? Directions might read like this: a family succession plan outlines the strategic process the family employs to ensure a smooth transition of leadership and roles within the family structure, particularly during times of change or the departure of an Elder.
It involves identifying and developing internal family members or proxies to fill critical positions while maintaining stability, establishing timelines for transition and implementing contingency plans to mitigate risks associated with a family crisis.
In simple terms, it is the work of Elders to get things in order and then share that information with their families. It would include preparing the assigned Durable Powers of Attorney for Health and Finances. Those documents would be in place for a change in the ability of an Elder to make decisions on their own.
At the time of the Elder’s departure, documents would be in place to distribute assets to named recipients. The succession plan would undoubtedly clearly lay out the Elder’s wishes in terms of end-of-life care.
How senseless would it be for the leadership of a company to go to the work of succession planning and not communicate the information to those who are key players? If the goal is to create confidence that plans have been made, it can’t be kept secret from those that it directly affects.
The plan is in place to put everyone at rest about the company’s future. Likewise, how important is it for Elders to do the succession planning in advance and communicate the information for the peace of the heirs and to keep the family healthy and whole?
The plans we make, and the communication with those involved are crucial for the peace and harmony of future generations.”
Let’s get together if it is time to update your estate plan or create a new one. We can discuss what is important to you, your legacy, and what you want to leave for your loved ones. It will be your plan, customized to your unique situation. We can discuss the best approaches to sharing the information with your loved ones because that’s important, too. Start by visiting my website, www.davidlefton.com, or call me directly to schedule a consultation at 513-399-7526. I would be honored to help you.
Source: Topeka Capital-Journal 2/20/24 by Connie Mason Michaelis