Estate planning is the structure of management of assets by families and is usually extremely time-consuming. A well-done estate planning process involves many conversations amongst family members, it can take a few years and it sees through many lenses including taxation, next-generation preparation & reporting, and communication across multiple generations amongst others.
It is usually an emotional journey and therefore encounters significant reluctance from a lot of African patriarchs and matriarchs who must face many truths about their families.
The holidays are however a very important time that can be used for significant milestones in estate planning. The question is, how?
- Have important one-on-one conversations about the future: The holidays usually have everyone together and in a jolly mood. It is a good time for patriarchs and matriarchs to have conversations with their children, understand their plans for the future, and share their thoughts on the future.
- Have group family meetings: The holidays usually have everyone staying together or close to one another over a period of time, therefore it's a good time for general family discussions on family values, family decision-making frameworks, and for making decisions as a family.
- Have critical wealth discussion meetings and (or) family retreats: With family members having more downtime from their busy schedules during the holidays, it can become a critical time to discuss the family wealth and make estate planning decisions. Including the goals to be achieved by the decisions made, strategic steps to be taken, key assets to be acquired or disposed of and more.
- Evaluate behavior: A critical quality to successful transitioning is the emotional capacity of the chosen next-generation leader or leaders to steward the family together. The holidays give patriarchs and matriarchs the opportunity to observe and identify key family members who have the capacity to steward the family into the future.
- Spending time with the younger generation: The holidays are a good opportunity to sit with the younger generation, understand their vision for life, bridge communication gaps, and share the wisdom gained from years of experience. It allows the patriarch and matriarch to sow seeds of wisdom that may be useful for years to come.
We therefore suggest that during all the eating and drinking, having critical conversations is a great use of the holiday season. It might even become the reason why everyone shows up for the holidays.
This holiday, think about having some important estate planning conversations with your family.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
