Often are we left with the question of what happens to everything that we own? That’s how succession planning comes into the picture. Succession Planning guards the strategy around passing the leadership roles of ownership of a corporation, financial assets, or personal assets.
As goes by the term, Succession Planning isn’t an immediate event or an after-thought, but rather a proper systemized planning putting into perspective and evaluating each one’s skill and identifying a suitable and a potential successor and/or replacement. Plans for effective succession must be assessed, analyzed and evaluated during regular intervals, most preferably annually. Adequate, appropriate and well-established hiring policies helps to identify and ascertain suitable successors from time to time. To give an example of simplifying the above is hiring and courting a potential candidate from another organization and grooming him to hold executive-level positions in the organization.
In the UAE, one can often witness high-net-worth individuals and business people delaying their succession plans together feels no immediate threat to their health and life. But despite that, Succession Planning is essential in order to foresee force majeure situations as tragedies, calamities, catastrophes, and disasters may well occur anytime and at any given place without any invitation or request.
Previously in the UAE, there were no measures to have a proper Succession Planning model, and non-Muslims could not register wills to secure assets. With the request of application, home country law is the only available solution that would be read in line with UAE’s Personal Status Law (Federal Law 28 of 2005). Assets were distributed based on the regulations and provisions of Sharia Law.