Wealthy families can plan earlier for aging parents and succession

Wealthy families aging parents succession planning often focuses on taxes and asset transfers, while leaving unanswered who will make decisions if a parent can no longer run a business or manage a fortune. CNBC reported Aug. 20 that advisers and lawyers see too few families address that question before signs of cognitive decline force the issue.

That gap can turn a health event into a fight over authority, advisers told CNBC. The recommendations are not a substitute for legal or medical advice, and they do not ensure a family will avoid a dispute. They offer a way to prepare while the parent can still take part in the choices.

How can wealthy families prepare for aging parents and succession?

Start the conversation before a crisis. Mallory Findley, head of family dynamics and financial education at Rockefeller Capital Management, told CNBC that waiting for a stroke or a disagreement leaves relatives trying to plan when emotions are high and trust may already be strained.

Families can set a recurring time to discuss finances, business responsibilities and future plans, according to BJ Goergen Maloney, global head of J.P. Morgan Private Advisory. Those meetings need not be formal; the point is to establish a habit of candid discussion. Findley said a business sale or a birth in the family can also provide a useful trigger for reviewing plans.

A transition does not have to mean stripping a parent of every responsibility at once. Valerie Galinskaya of the Merrill Center for Family Wealth told CNBC that needs can change gradually, and families can consider which person is best placed to make particular decisions over time.

That approach can preserve a parent’s role while adding support. Mark Parthemer, chief wealth strategist at Glenmede, described to CNBC a family that moved its patriarch from company president to board chairman, allowing him to remain involved in strategy while another person handled more complex business dealings.

What should a family review before a parent needs help?

First Citizens, in educational guidance published in 2025, recommends keeping account details, estate records and beneficiary forms organized and reviewing them regularly, especially after major life events. Families can also identify the financial, legal and health-care professionals who would be involved if support becomes necessary, and discuss how caregiving duties could be shared or changed.

The bank lists a will, a trust, a durable power of attorney, a health-care proxy or health-care power of attorney, and an advance directive among common documents to review with an estate-planning professional. The suitable documents and their effect depend on a family’s circumstances and jurisdiction.

• Set a regular family discussion schedule and revisit plans after major events.
• Clarify who would handle defined financial, business, legal and care decisions.
• Organize account records, estate documents and beneficiary information.
• Identify trusted advisers and discuss family caregiving roles.

Families should pay attention when a parent begins missing bills, making poor investment choices, struggling with basic calculations, spending impulsively or becoming the target of fraud, First Citizens said. Those signs do not establish a diagnosis, but they may warrant a prompt conversation and professional support.

Scott Rahn, a trust and probate attorney at RMO LLP, told CNBC that family businesses may consider safeguards such as retirement ages or mental-capacity evaluations. He and other advisers stressed that the way relatives discuss a handoff matters: adult children who move too quickly or challenge every decision can damage trust, according to Huntington Bank wealth strategist Dan Griffith.

This story draws on original reporting from CNBC.