2022 plans: Time to have your ducks in a row

Kirsten Taylor-Martin
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If COVID-19 has taught us anything, it is to plan for the unknown. As you head into the holiday season with your family, it is a good time to consider your plans for your family. Do you currently have all your ducks in a row? What aspects should you consider? What do you need to have in order? Not just in relation to your business – but the family finances as well?

Here are some aspects to consider and questions to ask yourself:


It is important you diversify and minimise your risks. Do you want all your eggs in one basket? Family businesses are often driven to continually reinvest in the business. But the last two years have really made us reconsider this notion. If you have cash available in your family business, there is an opportunity to commence a dividend policy. This means you can extract cash from the business and diversify your family investments in a strategy for the long term. Has your family discussed setting up a Family Office? Does it seem overwhelming? Are you wondering where to start? We can assist with our new ‘Family Office start up’ product.

Estate planning

Do you have an estate plan in place? Have you had it reviewed to ensure it is in line with your wishes? Have you discussed estate plans with your family to ensure they are also aligned?

For instance, we often hear families discuss the business remaining within their bloodline, but then their Wills state they are leaving all their assets to their spouse. In these cases, it is worth having your Will reviewed together with your group structure.

Financial education

Have you started providing your children a financial education? While the aim is to build family wealth – a legacy for generations to come – what is often overlooked is educating children or the next generation and equipping them with the skills needed to uphold this legacy. We suggest starting with simple lessons, such as the value of money and saving, and then continuing in later years to understand the stock market, for instance.

Ultimately, you want future generations to continue building the legacy, and not be the generation that loses it. This requires education. What is your plan to educate the younger generations and safeguard this long-term wealth?

Family bank

Each generation faces their own new issues and challenges to navigate. For instance, a growing concern is how the younger and next generations will be able to afford to enter the property market. Many families look to find a balance – assisting their family financially, while also ensuring they stand on their own two feet, appreciate saving and reaching their own goals. Family offices can allow families to create a pool of funds to on-lend to the next generation and save them from having to deal with the banks and associated fees. In these cases, we recommend a loan agreement to ensure the loan is repaid and the asset is protected.

As you head into the festive season to enjoy much needed time with your family, take the time to stop and think – do we have all our ducks in a row? Are our assets diversified in case 2022 brings much the same as the last two years – or the next unpredicted event? Do all our estate plans align with our family purpose? And what are we doing to set future generations up for success? The future of your family legacy is in your hands.

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