Succession Planning | By Rod Schauer
Succession planning is an important part of any financial plan. Although, preparing for what will happen to your money after your death can be a difficult issue to discuss. A well constructed succession plan assures your loved ones are well cared for in the event of your death.
The succession planning process involves two main considerations: life insurance and preparing a will.
In the event of your death, life insurance can ease financial burden and provide security for your loved ones. A lump-sum payment can be used to supplement lost income and make payments (mortgage, for example), helping your successors during a difficult period. Financial security and stability can remove unnecessary stress during the loss of a loved one, an already difficult time.
Preparing a Will
A written will provides a guide to help your loved ones through the succession process. By naming your executors and providing instructions on the distribution of your estate, your surviving loved ones avoid having to guess your wishes. Rather than state law determining how your assets are to be divided, a situation that can result in lengthy court proceedings, a written will provides clear instructions that you have chosen for your successors. Save your loved ones the stress of dealing with financial issues by planning for your success while you are alive.