Top 10 Succession Planning Tips
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Top 10 Succession Planning Tips

Rabobank’s Top 10 Farm Succession Tips

Over the years, our Succession Planning specialists have gained many valuable insights into how families can manage the unique challenges they face. You can make an appointment with them here, but meanwhile you may find their Top 10 Tips useful.

  1. Start the conversation with all family members early; then you have more options and family relationships have a greater chance of being maintained.
  2. Make sure all stakeholders hear the same conversation at the same time in the same place so that the flow of information is equal.
  3. It is important that the goals of each individual are fully explored, discussed and any areas of misalignment investigated.
  4. Make sure that all family members are aware of financial reality, financial possibilities, and honesty around financial needs.
  5. Be aware that the process is lengthy and complex and requires energy and perseverance and financial resources.
  6. You will need advisers to help formulate plans. Shop around and make sure they listening and are aware of all stakeholder goals.
  7. Succession planning involves change – everyone will feel comfortable with different rates of change, so the journey will possibly stop and start over time; and at varying times family members will be frustrated and/or fearful.
  8. Discussions about family property, in particular the family home, and money are likely to involve a level of emotion – allowing for this and creating the best environment is important to maintaining objectivity
  9. It can take practice for family members to participate in more formal discussions with confidence. But it is a very rewarding and enabling behaviour to embed in families. It can be useful to use the skills of independent advisers to help establish this.
  10. Don’t make assumptions – find the courage to ask questions and express what you really want to build a better family understanding.