“Transitioning to a new financial captain won’t happen for many years so I can do all this later.”
This is a common theme, so why act now? There are two primary advantages of starting this work now. The first (and you will see below) is that the transition is much more complex than one imagines. The current financial captain has developed beliefs, philosophies, systems, relationships, and a way of operating over many years, often decades. It is unfair to expect the new financial captain to be comfortable in this role within days, weeks, or even a year.
The second significant advantage of acting sooner is that it gives the current financial captain more influence. The common expression is that one should not govern from the grave, however this should not exclude sharing of guiding principles and lessons learned. In addition to the basics such as sharing advisors, names and contact information, and the history and breadth of the assets, early actions allow the current financial captain to share the why & context of the many decisions with the successor captain and thus vastly help him/her succeed in their new role.
As an ally, Delante supports the transition both prior to and post the Trigger Event.
Prior to Trigger Event | |
Strategy | · Family values and goals · Financial strategy & beliefs · Family taboos |
Beneficiaries | · Who are they and what is their current situation? · How best to support each one? · Challenges & concerns |
Professionals | · Estate attorneys, financial planners, money managers, accountants, etc. |
Assets & Liabilities | · What are all the different assets & liabilities? |
Structure | · Trusts, Partnerships, Corporations, etc. · Tax status |
Post Trigger Event | |
Personal Side of Money | · Emotional support · Thought partner · Decision making |
Execution | · Administration (file & pay taxes, pay bills, coordinate professionals such as accountants, lawyers, etc.) · Investment (oversight of investments and investment professionals) · Beneficiary support (ensure financial support is a positive not negative on their development and livelihood) |
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