Rise High Investor Weekly Video #47 – Succession Planning



Why Succession Planning Matters

For many of us, building a property portfolio isn’t just about achieving financial independence—it’s about leaving a legacy for the people we care about most. Succession planning allows you to:

  • Distribute your assets according to your wishes.
  • Minimize financial stress for your loved ones.
  • Protect your wealth from unnecessary taxes or legal complications.

Steps to Start Your Succession Plan

Getting started with succession planning may feel overwhelming, but breaking it into steps makes it more manageable. Here’s how you can begin:

  1. Define Your Goals:
    • Take time to reflect on how you want your assets to be distributed.
    • Consider who you want to benefit from your property portfolio and in what way.
  2. Seek Expert Advice:
    • Work with a qualified lawyer to draft a detailed and legally sound will.
    • Discuss the potential tax implications, including land tax and income tax, with your advisor.
    • Ensure asset protection strategies are in place to shield your beneficiaries from financial stress.

Key Considerations for Succession Planning

When planning your succession, keep the following factors in mind:

  • Avoid Simple Wills: Passing assets directly to a spouse or loved one may create unexpected land tax or income tax burdens. Consider alternative strategies, such as testamentary trusts, to mitigate these issues.
  • Understand Joint vs. Tenants in Common Ownership:
    • Properties held as joint tenants automatically transfer ownership to the surviving owner, limiting flexibility.
    • Properties held as tenants in common allow you to decide how your share is distributed in your will.
  • Plan for Future Marriages: If your spouse remarries after your passing, determine how you want your assets managed in such a scenario.

Special Considerations for Trusts and Companies

If you hold properties through trusts or companies, additional steps are needed:

  • Appoint the Right People: Ensure the appointor of a trust is someone you trust to manage its assets appropriately.
  • Review Company Directors: Verify that directors are in place to ensure continuity of decision-making and asset management.