Estate Planning in a post-Pandemic World

The pandemic has been unprecedented in many different ways, and its impact has affected numerous aspects of economic, family and social life. While this period has been undeniably difficult, it has also provided an opportunity for many people to reflect on the more important things in life. For some, this reflection has given way to action, especially in planning for the future to ensure that loved ones are taken care of.

Estate planning services and advisers have become sought after during the pandemic. At its core, estate planning helps individuals plan for the future, which — as the coronavirus has shown — is unpredictable. While the inevitability of ageing is not lost on most people, taking action early to plan isn’t the default route that most people take.

However, as Dr Edgar Paltzer — an attorney-at-law who provides legal advice on wealth structuring services — knows, having a plan in place provides a sense of empowerment and stability.

Working with a wealth structuring or estate planning professional can help an individual develop a plan that may include some of the following aspects.

Wills

For many individuals, the pandemic has highlighted the need to have a will in place that accurately reflects their wishes and assets. Similarly, there is also an advantage to having a mandate in case of incapacity written out to ensure that an appointed person can manage affairs if an individual is unable.

Succession Planning

An experienced professional can offer guidance on succession planning to family offices, which is imperative to establish the appropriate structures that ensure continuity in the face of uncertainty.

Coming up with a solid plan requires an understanding of the family office’s long-term vision, which will ensure that the resulting strategy can be implemented.

A well-known challenge in succession planning for family businesses is when the founders want to retain majority control over the company’s affairs. Others make the mistake of believing that the next generation should or will follow their parents into the business, which is understandable but not always the case.

In some cases, the younger generation has different preferences and expectations than the founder generations, which can lead to situations where the former have little or no interest in working in the family business.

However, companies and individuals who retain and grow their wealth for generations are typically bold enough to engage the necessary support early.