It is obvious to everyone that our beloved Queen is reducing her duties with Prince Charles taking over events such as the State Opening of Parliament, and her only appearing a couple of times at her Jubilee ...
If you have built a thriving, growing business that has survived difficult times, you're going to need a plan for both your business and your wealth as you get older and are unable to keep up with the level of effort you normally put in. And what's going to happen when you can't be involved? What's going to happen when you eventually die?
As a Matriarch (or Patriarch) of your realm, just like our Queen, you'll want to be involved in a meaningful way while preparing the ground for a future without you. The Firm has had hundreds of years of practice, but for the likes of us, there is a real art to finding the right balance between retaining control and handing it over to those you are preparing to succeed you.
You may be comfortable with your eldest children inheriting your wealth because you trust them, but if one of your offspring isn't very good with money and is always asking you to bail them out with debts, you may not want to give them access to a large lump sum of money or give them control of your business.
You can balance these concerns. You may consider transferring shares into a trust so the family can receive distributions from it, but don't have any power to sell the business. Different share classes can also be useful as you can retain majority voting powers and get future dividends in your golden years.
For the very wealthy, a family charter is useful. This is like a shareholder agreement detailing how collective wealth should be shared and decisions should be made on your death. If you are lucky enough to have many zero's showing on your bank balance, then I always advise introducing your children to your solicitor, accountant, tax adviser and investment manager when they're young so they understand how the world of business and money works from an early age.
Still, thinking ahead can make succession easier on your family, and there are many ways of doing it. Putting the right structure in place now means that everything moves smoothly when you retire and is easiler for everyone when you eventually die.
If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.