What Really Matters in Family Succession Planning

The largest generational wealth transfer in modern history is already underway. Over the next 20 years, an estimated $124 trillion will change hands, with most of it passing to spouses and heirs.¹ For many families, the question isn’t if wealth will transfer, but whether it will do so intentionally, efficiently and in a way that preserves both family purpose and family harmony.

Succession planning is about far more than asset distribution. It is about preparing people, aligning values, managing complexity and building structures that can stand the test of time. When families fail to plan, wealth can dissipate quickly, eroded by taxes, misunderstandings, insufficient governance or a lack of preparation for the next stewards. Effective planning ensures continuity, clarity and a legacy that extends beyond financial capital.

Start early and talk often

Every successful succession plan begins with open communication. Families often avoid these conversations because they feel uncomfortable or emotionally charged, yet delaying them increases the risk of conflict later.

Establishing clarity around expectations, roles, family values and purpose helps reduce uncertainty and prevents avoidable misunderstandings. That clarity allows the family to move beyond hesitation and into intentional decision-making.

Build strong family governance

Effective governance can feel like a lot of paperwork, but in reality, it represents the creation of crucial structure. For families with complex assets, multiple generations or cross-border ties, governance provides stability and accountability. This may take the shape of a family constitution, a family council, or a formal decision-making process.

These frameworks support long-term cohesion by helping families manage conflict, articulate shared values, and clarify how decisions are made. Governance becomes a place where responsibilities are defined and succession pathways are formalized. It helps navigate challenges with structure instead of stress.

Deliberately prepare the next generation

Transferring wealth is one thing. Preparing heirs to manage it is another. Too often, the next generation inherits assets before inheriting the skills, mindset, or discipline required to manage them. Financial literacy, mentorship and phased involvement in family decisions give heirs the confidence and capability to become responsible stewards.

This preparation should be age-appropriate and supported by advisors, not only to educate heirs, but also to maintain the continuity of the family’s mission and philanthropic commitments. When heirs understand not only how to manage wealth but why it exists and what they have been tasked with carrying out, they become better guardians of the legacy being passed to them.

Use sophisticated tax and legal structures

Families with meaningful assets can face significant exposure to estate taxes, gift taxes and generation-skipping transfer taxes (GSTT). Effective planning requires a range of tools working in harmony: trusts, gifting programs, life insurance strategies, philanthropic vehicles and, where appropriate, jurisdictional planning across multiple countries.

Trusts—whether dynasty trusts, SLATs, ILITs, or charitable remainder trusts—protect assets, guide distribution and reduce tax burdens. Gifting strategies help move assets out of the taxable estate over time. For globally mobile families, cross-border tax analysis is essential to avoid unintended consequences.

Expert advisors can bring the technical expertise to tailor these strategies to each family’s goals and risk profile, ensuring the plan aligns with both current law and future flexibility.

Plan for business continuity and liquidity

For families that own closely held businesses, the enterprise is often both a financial engine and a legacy asset. Succession planning must address operational continuity, leadership transition, voting control and liquidity for potential estate taxes, all without forcing an unwanted sale.

Structures like buy-sell agreements or family limited partnerships can help preserve ownership and keep decision-making aligned with the family’s long-term vision.

Protect the legacy and the relationships

Perhaps the most overlooked element of succession planning is emotional stewardship. Wealth is deeply tied to identity, values and relationships. Without clarity, multiple heirs may develop competing expectations about future roles or entitlements.

Your team of advisors plays an essential role in counseling heirs on the values and purposes you desire for your wealth, ensuring the strategies implemented today continue to serve the family’s mission for generations to come.

A plan that evolves with you

A succession plan is not a static document, but a living framework. Families change. Laws change. Values evolve. Reviewing the plan regularly ensures relevance and responsiveness when life circumstances shift. The most successful families treat succession planning as an ongoing process, not a one-time event.

At Corient, we help families build succession strategies that stand the test of time. Whether you are beginning the planning process or refining a long-established strategy, a thoughtful, well-coordinated approach can help protect your legacy and strengthen the relationships that matter most. 

¹ https://www.cerulli.com/press-releases/cerulli-anticipates-124-trillion-in-wealth-will-transfer-through-2048

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