Turning Conflict into Legacy: A 5-Point Guide to Succession Planning for Families in Dispute

For families experiencing conflict, succession planning is not only a tool for wealth transfer but also an opportunity to rebuild trust and set a stable foundation for future generations. A carefully structured succession plan can help prevent further discord, preserve relationships, and ensure a legacy of unity.

Here’s a 5-point guide to help families in dispute navigate succession planning effectively.

1. Acknowledge and address existing conflicts

Unresolved tensions within families can intensify when inheritance discussions arise. Start by openly recognizing and addressing conflicts, as this sets a foundation for trust. For this, an experienced advisor who works in the best interests of the whole family but who takes instructions from the patriarch and matriarch is our preferred recommendation. This is preferable to a neutral mediator or family counsellor, who typically fence-sit and may not deliver the outcome that is needed. This works well so long as there is a basis of complete integrity in putting forward what is consistent with the family values, goals and objectives of the family. As professionals we create a safe space for family members to express their concerns and goals, leading to clearer communication. Acknowledging existing issues early on prevents them from escalating during the inheritance process and helps each member feel respected and understood.

2. Use a Post Inheritance Position (PIP) checklist

The PIP checklist is a powerful tool for assessing each beneficiary’s financial habits, obligations and readiness to handle inheritance. For families with strained relationships, the PIP checklist becomes essential, as it allows you to see each beneficiary’s strengths and challenges. For example, if a beneficiary has significant debt or lacks financial discipline, the PIP checklist can help identify these vulnerabilities. The family can then consider setting up a trust or offering financial guidance to ensure the inheritance is managed responsibly, reducing the risk of future conflict over asset mismanagement.

3. Consider trusts and structured inheritance options

Structured inheritance options, like discretionary trusts, are particularly valuable for families in conflict. Trusts allow specific people to control how and when assets are distributed, preventing potential disputes over sudden wealth transfers. For example, setting up a trust with gradual payouts can help prevent a beneficiary from misusing their inheritance due to lack of experience or financial challenges. By designating a trustee to manage assets on behalf of a beneficiary, the family can create a stable, protective structure that ensures the assets are preserved. Structured options also help tailor inheritance to individual needs, offering flexibility and control.

4. Build an inclusive and transparent process and knowledge transfer

Transparency is critical when trust has already been eroded by family tensions. Involve all family members in the planning process from the beginning. This doesn’t necessarily mean every family member needs to have decision-making power, but they should feel informed and valued. Regular check-ins, updates and meetings allow family members to understand how decisions are made and provide feedback. This openness reduces misunderstandings and resentment, and it helps create a more collaborative, positive atmosphere. When beneficiaries feel they are part of the process, they are less likely to challenge the outcome. It is also crucial for knowledge transfer.

5. Emphasize family harmony and legacy where pertinent

Succession planning isn’t just about distributing wealth; it’s about building a shared vision for the future. Remind family members of their common goals and values, reinforcing the idea that the family’s collective legacy is more significant than any immediate disagreements. Framing succession planning as an opportunity to create a lasting legacy can help family members look beyond their differences. A shared mission statement or family vision for future generations can serve as a unifying force, encouraging collaboration rather than conflict. For families already in conflict, these steps provide a structured approach to succession planning that prioritizes communication, mutual respect, and thoughtful asset distribution. Through careful planning, families can turn succession into a positive, unifying experience that strengthens relationships and preserves the family’s legacy for future generations. Where harmony doesn’t exist because of the personalities or history of persons involved there are processes that need to be managed to ensure succession occurs as intended. These processes are better managed sooner than later with a view to obtaining the outcomes required.

Dennis Benjamin B.Ec. LL.B.

Principal,?Conflict Manager,?

+614 0900 1900?

[email protected]

www.conflictmanager.org

Conflictmanager.org specializes in addressing these delicate succession issues. With a focus on progress, the organization helps families resolve conflicts, no matter how diverse or eclectic the individuals involved may be. Their goal is to restore peace, particularly for the matriarch and patriarch, who often bear the emotional weight of family conflict. True peace goes beyond settling arguments—it means achieving a state of mind where decisions can be made confidently to guide the family forward. Through this process, families can avoid unnecessary drama and secure a harmonious future for generations to come.