We live in a world of uncertainties, surprises, and a world that has been drastically changing. Every individual can be outstanding in creating wealth. However, very few of them succeed in reserving it for the future.
Wealth has most likely topped our charts of life. All we work for, strive for, dream for, and go beyond all difficulties to make a living leads to wealth. But the question indeed remains, how much of it are we reserving it for the future?
Are we truly concerned of our well-being from this year, till our generations to come?
BEFORE WE GET TO THE BOTTOM OF THIS TOPIC, LET US DISCUSS A FEW ISSUES:
ISSUE ONE – LACK OF KNOWLEDGE. Most of us stand far from the idea of knowing the importance of saving. Most of us find it challenging to defeat our desires over needs and get attracted to wants, which leads us to be broke much before we can even consider an investment.
Let’s understand that you can never safeguard your wealth. There can be unexpected events that would take away all that you have tried to reserve; it could be a natural disaster or someone in the family requires a huge amount of liquid to save their life against illness. However, the idea of succession planning will help you beat all these odds and provide you with the best security for your wealth and your future.
ISSUE TWO – LACK OF AMBITION. While we may accept that we are a group of hard-working class individuals, who might come across complicated and challenging situations, the bitter truth is most of us aren’t ambitious enough. To change your current pace, you must fuel in with an ambition.
ISSUE THREE – CHAIN OF VALUES. As you may have wondered, our history of rulers and kings functioned in a succession method. Shocking, isn’t it? Let me break it down for you; they always practiced handing over the kingdom from one father to another, one son/daughter to another. They would never give an outsider any liberty to take claim over their assets.
What we understand from this is that using a succession plan can be a strategic way of building a secure and growing financial legacy for your loved ones.
IMPORTANCE OF SUCCESSION PLAN AND WEALTH MANAGEMENT
The agenda behind having a succession plan is to identify how much wealth is accumulated and how it may be used while an individual is alive; and post-death.
A succession plan helps eliminate financial stress and lets you think beyond worrying.
It allows you to think wisely and motivate in effective decision-making for the betterment of the future.
Succession planning is an effective strategy to pass on their wealth from one person in the family to another; give authority from one leader to another; without breaking the continuous flow of revenue into one’s life.
This strategy allows seizing the opportunity of mishaps caused due to unforeseen circumstances.
LET’S TAKE A LOOK AT HOW SUCCESSION PLANNING IMPACTS IN A FAMILY
Some successful leading entrepreneurs and wealthy people in business cater to having an effective plan towards saving their wealth. They are keen to hire financial advisors and recruit financial planners to manage their earnings on a monthly or yearly payroll. However, most of the wealth earned will be passed on to their fellow members in the event of uncertainty.
The challenge arises when an inexperienced individual’s wealth is passed to a member who is unaware of the idea of wealth management, which leads to all the wealth that took high efforts in the building; suddenly slipping away like water.
Having situations like these, necessary to find a strategy that would help share a common interest amongst the family members.
FACTORS THAT INFLUENCE THE ISSUE
Preservation of wealth has been a common interest and a question of human behavior.
Wealth preservation is a special procedure that focuses on eliminating the threat when lethargy sets in.
Dynamic growth of wealth within an organization or a family comes with great efforts and challenges. In order to preserve such efforts practice of sharing a common interest will lead to a secure future.
To successfully preserve the wealth of a family or one individual effort, one must create a substantial value of its asset over the mind of its members and control in active participation of sharing a common interest.
The practice of communication on the subject of the matter will also have a positive contribution to the idea.
Above all, the combination to achieve the right goal comes when factors such as –
Communication about the strategy
educate on the experience of loss and income to future generations
Training and regular practice
Be a leader and set an example
WHY IS SUCCESSION PLANNING IMPORTANT IN UAE
The importance of succession planning in the UAE is always to ensure that leadership and authority within oneself are in place. Whether it’s a family business or an organization that involves various people and minds operating under one roof, a succession plan plays an essential role in the development of its future.
UAE has been spreading its wings economically. It is growing at a pace that impacts the growth of likely minded people who share a common interest – owning tremendous wealth.
Considering its pace of economic growth, the discussed strategy of ‘SUCCESSION PLANNING’, will allow you to succeed as an individual who is ambitious and potentially competitive.
TAKE NOTE
Now that we’ve got a clear picture of succession planning let’s also take note on what the law of the UAE says about succession planning in UAE.
If you are the owner of a firm and have come across this article, then this information is wide to you. According to the law of the UAE, regarding the implementation of the succession plan, the owner of a private firm or an LLC should understand that all assets, including the bank accounts of a deceased person, are frozen until a UAE court releases the succession mandate.
Considering the above statement, it is very clear-having a succession plan validates the need for a profound business plan that will reduce the risk of itself breaking into problematic situations, in line with its leaders and managerial chain of action.
