60 3 9212 6940 How to Get a Succession Plan for Wealth Management

1. How to get a Succession plan for wealth management? Having a wise succession planning for your wealth management and business shows a lot of care and respect for the people that you love and care. With a proper agreement, the beneficiaries will be your family, your staff, and your clients. Setting a successful succession plan is not a hard task but there are many moving parts. You should think about opinion, funding, operations, regulation, compliance, contracts and ongoing client relationships. For this discussion, you need to focus on the succession side of your wealth management business instead of the traditional CPA (Certified Public Accountant) side. While there are many similar issues for wealth management and succession planning, traditional CPA firm’s value is discontented from the wealth operation practice’s value. CPAs are frequently at the base of many people’s significant business decisions. There are more fun topics to discuss than others. But, wealth management and succession planning in Malaysia usually are not involved in the most favored subject list. Most business owners are in the burden for a long time with a dysfunctional or non-existent succession plan, resulting in facing workforce conflict and rising costs. That’s why you need to make sure you have a well- planned and documented continuation plan for your wealth management. But how?

2. Here are four steps to start a perfect succession planning for wealth management What’s next for the empire? The first step to developing a progression plan is to determine what will be the best for long- term business. Consider if business’s key person is not being there tomorrow. Harsh! But stuff happens, and unfortunately, you can do nothing for some possible future events. Wealth management and succession planning in Malaysia needs to be done as if the unthinkable will happen tomorrow. There are generally three routes a family business can take when the current leadership is ready for a handover. Find a buyer for the company, dividing the proceeds between children or other beneficiaries. After that, allocate assets or firm units equally amongst children. And finally, allow for a gradual transition of ownership to one or more heirs, who will take up different roles within the empire. The continuous work The second step that you need to ensure your business is as resilient as possible the day after the dreaded event when you are looking beyond your wealth management and succession planning’s financial side. From an operational perspective, make sure the daily part of running the business is going to be functional. This means everything from assets (you may be overseeing to client services in progress and meetings.) already on the calendar. Inspect how each main person on your team spends their time and has a successful backup plan in place. External advisor Step three of great wealth management and succession planning process depends on bringing in third parties. While it may seem offensive to bring external advisors into a family matter, it can do a lot for objective decision-making and conflict resolution. This means, if you bring external advisor, it can help to introduce an objective, experienced perspective into the discussion –someone who has worked with other families but doesn’t have personal opinions about the members of the given family. What’s more, they can help to anger some of the more emotional parts of the process, which are to be expected to give dangers.

3. A successor selection Perhaps, the most essential part of wealth management and succession planning in Malaysia is selecting a beneficiary to the empire. Many criteria need to be taken into account and discussed with the advisory team. Should the next leader of the company be a family member or an external party? Could sibling challenges become a factor in the decision? Is there a clear choice for the receiver between existing family members? Does the nest generation want to keep the heirloom of their parents within the family or separate the assets and use the proceeds for other ventures? Succession planning also needs to be set into motion decades in advance. Handing the keys to the family business off to anyone – even a spouse or a child – needs a good education, an excellent awareness of all aspects of the organization as well as training in business strategy and management. The Bottom Line! Overall, Wealth Management and Succession Planning process is certainly a long and complex process, but with a skill set and an open mind, you can set yourself up for long-term stability within their businesses and families. No matter your age or how long you have been in the family business, a successful progression plan is an essential tool to ensure your creation and legacy survive an inevitable scenario. Feel free to contact us at +60 3 9212 6940 or consultant@qx-trust.com to know more.