Chapter 14
Estate planning & succession planning

How do you want to be remembered by your heirs after you pass away? Answer these questions:

• Can you comfortably say that the IRS will not get any more taxes from your estate than it deserves? If not, then you’re not alone.
• Are you confident that your plans and goals will be carried out after you pass away? If not, then you’re not alone.
• Do you often think that other people“have it under control” and have no worries about having their affairs in order? Not so!

Many people, trucking company owners included, have not taken the steps needed to protect the dreams they have made reality in their lives. In fact, the most common problem is that they may not even know the things that they have failed to do until it’s too late to do anything about them. Estate planning is a critical step in the succession planning process. Wealth alone is no protection. When Pablo Picasso died in 1973, his affairs were in chaos. He left no will to divide his $260 million in holdings. It took five years to settle his estate and cost almost $26 million. And Picasso was not alone. As you can see from the table below, the King of Rock and Roll was no king of estate planning!

Succession vs. Estate.
Your estate plan should be closely coordinated with and considered part of your succession plan. As part of your succession plan, pay close attention to your estate plan. In essence, a good estate plan is a subset of succession planning. While succession planning encompasses a greater scope, estate planning focuses primarily on a couple of items. Without these items your succession plan is incomplete. Estate planning focuses on what you can do today to plan for your death. A succession plan addresses what to do while you are alive and addresses many more issues like interacting with family members, management of your company, and transferring ownership of your company (while you are alive). Estate planning usually addresses these items:

• Estate taxes – also sometimes called death taxes or transfer taxes
• Healthcare directives
• Ownership of the assets you own as of the day you die

Without an estate plan, you are leaving your family up for bickering and losing money. You may have seen the hardships and distress felt by family members after having to sell off their parents’ business or favorite hobby just to pay the estate taxes. You may have even witnessed the pain of family members struggling over possession of their parents’ estate.

Getting started
Estate planning starts with a vision of how you want life to be for your survivors. There are many issues, and taxes are a large part. You want your family, heirs, and charities to receive your wealth, not the IRS, I assume. But estate planning is more than that. Having an estate plan also will help you:

• Obtain an overall financial picture and clearly set your life’s goals.
• Protect the wealth you have created.
• Avoid family money and inheritance misunderstandings.
• Avoid excuses and inaction but setting a program that is easy to follow and works for you.
• Be comfortable and enjoy the best days of your life.

Your last will and testament also is an integral part of the process. This sounds like a lot of work and it is, but you must do it. Start by reading the next chapter and discuss it with your accountant and attorney. Don’t be Pablo Picasso or Elvis Presley.