Succession & Estate Planning
The biggest misconception regarding succession planning and estate planning is the two terms are interchangeable. While they both refer to the difficult decisions that must be made in the event of a proprietor’s death or retirement, they deal with different kinds of property and thus require different planning strategies. So, what are the differences and how can we help you?
A succession plan is a process of passing on the ownership of a business to someone else in the event of the owner’s retirement or death. Even the most efficient, well-run business can become disorderly and ill-managed without a strategy outlining the transition. It may sound rather easy at first glance – simply handing over the rights to one’s company.
In reality, succession involves carefully considering a replacement (internal or external) while taking the current owner’s strengths into account, training replacements, and altering the plan as the needs of the company change – that’s a lot to consider and requires the aid of experienced professionals.
While a succession plan deals with the passing down of a business, an estate plan refers to the passing down of personal assets such as houses, vehicles, life insurance policies, RRSPs, TFSAs, jewelry, and more. Many would look at that list of properties and accounts and confuse an estate plan with a final will and testament. Estate planning doesn’t just involve drafting a will but rather the process of arranging the details of your will’s implementation.
Though both of these essential plans for your business and your personal assets are different, they’re equally difficult to map out correctly without assistance. Here at Harv S. Mand, we are experts at providing you with the guidance everyone needs when making difficult decisions. Call now to learn more.