Tuesday, September 13, 2022
HomeWealth ManagementClasses on Household Enterprise Succession from Queen Elizabeth

Classes on Household Enterprise Succession from Queen Elizabeth


I need to pay tribute to a household enterprise matriarch who died final week, Queen Elizabeth. Sure, Queen Elizabeth was a part of a household enterprise: the “Royal Agency,” an enterprise with $28 billion in property. Queen Elizabeth units an instance to place in place a strong transition plan for the household enterprise.

First, she educated a successor who stands able to step into her position. Prince Charles has been groomed all his life to now take over the monarchy as King Charles III. One of many main parts of a enterprise continuity plan is to pick out and practice a successor. Actually, the lifelong grooming of Charles is an excessive instance, however the bottom line is to establish a successor and develop into his coach. As we frequently say in Texas, have him “journey round within the truck” (or on this case, the royal carriage) with you to study first-hand the best way to do the job.

The Queen additionally had a plan in place for her farewell and burial often known as “Operation London Bridge.” Together with that ingredient in your succession plan is a giant present to the household in the course of the first days of grief. The Queen’s plan was activated by sending Prime Minister Liz Truss the code language: “London Bridge is down.” What adopted is an orchestrated collection of communications to key contacts, media bulletins and totally deliberate occasions. Comply with the Queen’s lead and go away directions to your burial, memorial service, obituary, photographs, and so on. Making these selections instantly following a beloved one’s loss of life is a heavy problem. Your loved ones will be thankful for the steering.

Queen Elizabeth additionally had a plan in place for her property. The $28 billion within the Royal Agency stays intact, just like a belief association, to supply ongoing funds to function the monarchy and preserve the palaces. In 2022, the Royal Agency supplied a Sovereign Grant of roughly $100 million to cowl such bills and preserve her family. Offering your loved ones with a supply of funding to maintain what you are promoting and legacy property (whether or not by means of life insurance coverage or a reserve fund) is likewise necessary, even when the quantity wanted has a number of much less zeros on it.

The Queen additionally owned roughly $500 million in private property. These property embrace some $70 million she inherited in 2002 from the Queen Mom’s work, stamp assortment, china, jewellery and horses, in addition to the Queen’s investments and actual property. It’s reported that the majority of these private property will go to King Charles III. Maybe within the royal context, King Charles’ siblings might be extra understanding of receiving an unequal inheritance (or maybe not?). 

One other ingredient of a considerate transition plan is to interact in planning to reduce property taxes. That’s one side the place the Queen acquired off the hook. In 1993, Parliament handed a invoice exempting the property of Queen Elizabeth from paying the 40% inheritance tax. As nobody in the US enjoys that profit (except they have been fortunate sufficient to die in 2010, the one and solely yr with no federal property tax), I urge all to implement methods to reduce the 40% U.S. property tax.

Relaxation in peace, Queen Elizabeth, and our gratitude to you for residing an exemplary life, all the way in which to the tip. 

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