Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Thursday, August 6, 2020

Beyond Estate Planning: Risk Management Through Continuity Planning

RM"Continuity Planning is the long-term risk management process for families, family owned businesses and family offices." 

Implementing a continuity plan reduces the impact of foreseeable risks and takes advantage of future opportunities. 

Risk management is essential, especially now as we are still dealing with the COVID-19 Pandemic. Unfortunately, risk management is one thing that was lacking when the pandemic hit our country, which lead to catastrophic consequences. Business owners and management are likely re-assessing their risk management and continuity plans.

Some estate planning objectives that are used for risk management include:

1.      Transferring financial risk to a third party (i.e., life insurance),

2.      Avoiding the risk (i.e., asset protection),

3.     Reducing the negative effect or probability of the risk (i.e., discounting techniques, gifts in trusts), and

4.     “Freezing” some or all of the potential or actual tax consequences of a particular transfer by breaking up ownership and control

Other objectives in Continuity Planning and risk management include:

  1. Developing scenarios for medium- and long-term planning
  2. Measuring the processes, leadership and resources needed to sustain the Continuity of ownership and control, and
  3. Modeling the dynamics within the family enterprise systems over time.

See Matthew Erskine, Beyond Estate Planning: Risk Management Through Continuity Planning, Forbes, July 28, 2020. 

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.


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I am glad that you enjoyed the article. Any feedback is always welcome.

Posted by: Matthew Erskine | Aug 10, 2020 11:58:18 AM

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