3 minThe keys to arranging a smooth succession
It can be difficult to talk about succession in a calm and detached way. But, with life expectancy increasing, the future heirs are also getting older. So it is important to think about your succession during your lifetime.
In an article published on 1st October 2020 in the Belgian weekly Le Vif, Bernard Goffaux, Head of Estate Planning at Banque de Luxembourg, describes the main advantages of succession planning.
Giving yourself time to prepare for what happens next
We tend to shy away from thinking about what will happen when we pass on. However, the heirs can be left in a horribly complex situation: worries about inheritance tax, potential conflicts, the emotional burden, etc. Nowadays, more and more people are taking the time to prepare for what will happen to their estate, not only after their death, but also before, in order to give some of it away without waiting for the fateful moment.
"There are lots of good reasons to spend time arranging the transfer of your assets during your lifetime, for both movable and immovable property, or whether a family business is involved," explains Bernard Goffaux, Head of Estate Planning at Banque de Luxembourg.
There are lots of good reasons to spend time arranging the transfer of your assets during your lifetime, for both movable and immovable property, or whether a family business is involved. Bernard Goffaux, Head of Estate Planning at Banque de Luxembourg
Early planning
Although, where inheritance in concerned, the Luxembourg Civil Code still talks about ‘children’, these days an inheritance is more often received at the age of 50 or 60, when the needs are no longer as great, than at 20 or 30.
Early planning for inheritance makes it possible to give at the appropriate time to finance studies, buy a home or develop a business project, for example.
Preventing conflicts
A well-prepared succession that is properly explained to the future beneficiaries can avoid a host of potential conflicts within the family after your death.
Personalise your estate
Planning allows you to make your own decisions on the distribution of your assets among your heirs, in compliance, of course, with the law on a certain percentage of the estate being reserved for the legal heirs (this has been relaxed in the recent reform of the Belgian inheritance law). It makes it possible, for example, to give more to some heirs in order to restore the balance in relation to any previous donations.
Protecting yourself
Succession planning enables you to protect yourself before you are no longer physically or mentally able to manage your assets. It is always a good time to think about what you want to do with your estate without jeopardising your own future: in other words ensuring that you maintain your standard of living without letting your savings go to waste.
