Succession planning can be challenging. Whether it’s because your family live in different countries, you have a blended family, or because you own assets in multiple jurisdictions, there are lots of factors that can affect the complexity of your estate plan.
This is the position Rupert Murdoch seems to have found himself in. At the age of 93, Murdoch is reportedly in the middle of a legal battle with his four beneficiaries over who will run his news corporations after he passes away.
While Murdoch’s circumstances are exceptional, the dispute does provide some helpful insights. Read on to find out what you can learn from the media mogul’s story about creating an estate plan that provides peace of mind and continued financial security for your beneficiaries after you’re gone.
Rupert Murdoch is reportedly fighting to ensure his son Lachlan can take over the running of his media empire
Reuters reports that Murdoch is in the middle of a legal battle to ensure that his eldest son, Lachlan, can take sole editorial control of his media empire after Murdoch passes away. Currently, the four eldest siblings are set to inherit the estate, but Murdoch wants to expand Lachlan’s voting power so that he can’t be challenged by his siblings on editorial decisions.
It’s thought that Lachlan is the most conservative of the four beneficiaries. For this reason, Rupert feels Lachlan is best placed to retain the media outlets’ right-leaning stance, ensuring they continue to thrive.
The reports suggest that Murdoch hopes that this will mean the corporations continue to provide commercial value to all his beneficiaries.
Clear communication and early planning are key when creating your own succession plan
As Murdoch’s legal battle demonstrates, attempting to create or change your succession plan at a later stage in your life can be stressful, and even create tension with family members. Starting your preparations early is one way you can help make the process run more smoothly.
As an expat, early planning may be key in ensuring that your estate is passed on as you would like it to be. If you hold assets in multiple jurisdictions, you may need specialist help to ensure you are able to pass it on as tax-efficiently as possible according to your wishes.
Additionally, talking to your family about your plans could help your beneficiaries understand and carry out your wishes more effectively when the time comes. These conversations can help your family to build a more effective financial plan of their own.
Standard Life has discovered that 36% of Gen Z and 29% of millennials are relying on an inheritance to fund their retirement. But in doing so, they may be overestimating how much they are likely to inherit, or miscalculating when they may receive a wealth transfer.
If this is the case for your beneficiaries, an honest and open conversation could mean they are able to put robust plans in place now to help them achieve their long-term goals.
Your financial planner could help to facilitate difficult discussions with your family
It’s not easy to talk about what you’d like to happen after you pass away. Depending on the relationship you have with your family, or indeed whether you live in the same country, it might be especially challenging to talk about this sensitive subject.
Your financial planner may be a helpful guide when it comes to facilitating these discussions. With their help, you can choose the most appropriate way to approach the subject so that you and your loved ones feel as comfortable as possible.
Your planner may also be able to help you and your family to agree on the most suitable outcome for your discussion. For example, would you like to inform your family of your wishes and help them come to terms with your decision? Or would you like to know their thoughts and ideas about how the family’s wealth could be managed after your death?
An honest discussion can give everyone the opportunity to voice their concerns. In doing so, you can help ensure that your family supports and accepts your decisions and that they can carry out your wishes when the time comes.
