Succession Planning

We do not solely act on disputes. A large part of my role is to try to advise clients on ways in which those very disputes can be avoided. This involves careful structuring and planning at the outset. Some of the claims that can be planned for include the following:

Determining flow of wealth on death: The first critical step in succession planning is understanding what you want to happen with your wealth in the short, mid and long-term. This should be your guiding star. Without it, succession planning becomes difficult.

Disinheriting children or grandchildren: It is a big step to decide to disinherit a child or grandchild. If you want to do so, it is important to plan this out carefully. You should speak with a lawyer. You should clearly articulate your reasons. You should ensure your lawyer keeps good file notes and records. You should talk with others about it (who might be able to give evidence later). You should consider a trust as a claim-protection vehicle.

Dealing with mixed families:  Mixed families involve unique considerations that can require intentional planning and structures.

Avoiding property becoming relationship property: Most people in New Zealand know that we have a statutory regime that deals with relationship property. This presumptively results in a 50:50 division of whatever is determined to be the net relationship property.  But there are mechanisms to shift the dial, such as the ownership of foreign real estate (immovables) and other mechanisms.

Avoiding trust disputes:  Trust structures needs to be created very deliberately.  This includes careful consideration of beneficiary class, protectors, beneficiary and trustee rights and obligations, and more.  This should not be left until a dispute arises.

It is far preferable to undertake some upfront work to avoid the risk and expense of future claims if that can be avoided.  Front-end work is far more cost-effective than back-end litigation.