Issue link: https://digital.canadianlawyermag.com/i/98104
strikes in order to get owners thinking about how it will go on without them at some point in the future. ���The time to address succession planning requirements and objectives is when you don���t have to ��� when you���re healthy, not when you���re under the gun because you���re ill or a family member is ill.��� The succession fund typically spends between $3 million and $8 million on a stake in companies that usually accounts for 35 to 50 per cent of the shares. The fund then puts together a board of directors to address strategic planning, leaving the existing owner to continue management of day-to-day operations. ���Succession planning takes discipline,��� says Klar. ���It���s a process, not just an event.��� Doing the work earlier doesn���t mean the key questions to ask a business owner will be any simpler. Klar says many business owners assume their children or another member of the family will take over. What they may not have done is made sure the intended heir actually wants to do the job and, more importantly, that they���re capable of doing it. Hudson says people who face up to tough questions about their estate before their death will reduce the chance of a messy fight later. ���You see cases where the mother gets annoyed, gives the money to charities, and the kids contest the will,��� he says. ���If it���s a very wealthy family, the person controlling the wealth should sit down with the kids and take themB&W(7x4.875)_National Magazine CBA JulyAug 2011.pdfsuch a surprise through the whole thing so it���s not 7/12/2011 4:04:44 PM when they die.��� One way to mitigate the sometimes-inevitable strife associated with the execution of a will is to make provisions for executor���s insurance. Myron Neufeld of ERAssure, which covers the costs of defence and indemnity for damages arising out of errors occurring during the administration of an estate, says many testators and potential executors are unaware of the level of personal liability they can face. With estates involving real estate or significant investments, the risks of a wrong move can be extremely costly. ���They get a deer-in-the-headlights-kind of look when it���s explained to them the tremendous amount of effort and challenge in the role they have ahead, so it offers them a peace of mind,��� Neufeld says. He says it���s particularly difficult and risky for people who transition into the executor role having held a power of attorney late in the life because of tighter restrictions. ���The average executor might do it once or twice in their lifetime, so there���s no chance to get good at this.��� Being asked to be the executor of someone���s estate may feel like an honour but it can be tough. It often takes a year or even two for an estate to wind up. During that time, there���s a lot of work, often dealing with emotional family members, that has to be done. So anyone thinking of taking on the role should do their research and really be sure before agreeing. Once again, planning ahead will mean being able to find an executor who you can trust to look after your interests and wishes. C M Y CM MY CY CMY K 13