Published By Bentley Reid
November 13th, 2024
Understanding the Differences Between Succession and Inheritance and How to Plan for Both
In the realm of wealth transfer, terms like “succession” and “inheritance” are often used interchangeably, yet they have distinct meanings and implications. Understanding these differences is important for families preparing to pass on wealth, whether in the form of personal assets or a family business.
This article explores the differences between succession and inheritance, their unique planning requirements and tips on how to coordinate both.
For families with substantial assets and business interests, an integrated approach to inheritance and succession planning is vital to ensure cohesion. Holding family meetings can provide a forum for discussing these plans openly, promoting understanding and reducing potential conflicts. Bringing in financial and tax advisers who specialise in both personal wealth and business succession can help families design a coordinated plan that meets their overall financial goals. For example, integrating trusts and other tax-efficient vehicles across both inheritance and succession plans can support a seamless transfer of assets and responsibilities.
