Navigating Family Governance And Succession Planning

In this part two episode of Trusted Insights, Partner Aimee Mitchell is joined by Senior Solicitor Maysie Chan to discuss key steps in family governance and succession planning. Aimee and Maysie explore how to translate family agreements into structures and policies that ensure long-term success and promote family harmony. Listen to part one with Evana Lithgow here.

[01:14] Aimee and Maysie discuss the importance of initial family discussions for succession plans. They emphasise the significance of consultation and transparency to achieve family buy-in. Aimee explains how early conversations help preserve family harmony and minimise future disputes.

[02:09] Aimee and Maysie talk about creating tailored governance structures. They explore how bespoke documents and structures are designed to align with a family's unique needs. Aimee also emphasises the importance of simplicity and flexibility for long-term effectiveness.

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[03:34] The discussion turns to the role of trusts in managing family wealth. The lasting benefits of trusts, such as asset control, continuity, and protection from external claims, are explained in detail. Aimee also covers recent changes in trust laws and their implications.

[05:31] Aimee and Maysie talk about understanding family constitutions. They outline the purpose of family constitutions as guiding documents that record shared family values, vision, and policies. They highlight how constitutions manage expectations and resolve disputes, particularly in large or multigenerational families.

[10:27] Aimee and Maysie discuss the function of family offices within governance structures, emphasising their role in managing administrative and investment tasks. Aimee explains how family offices support governance but cannot replace foundational family agreements.

[12:32] Aimee and Maysie wrap up with their key takeaways, stressing the critical importance of initiating succession planning discussions early. Aimee warns against the pitfalls of delayed planning, including disputes and wealth dissipation.

Information in this recording is correct as of the recording date, Monday, 4 November 2024.

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