Planning Before the Storm: TIGER 21 Chair on the Emotional and Strategic Cost of Succession

Succession planning is no longer a distant conversation; it is an urgent imperative.  

The largest intergenerational wealth transfer in history is well underway, bringing with it rising complexity, cost, and emotional weight for family offices navigating succession and estate planning.  

In a Crain Currency article by Marcus Baram, New York City and Family Office TIGER 21 Chair Michael Warszawski joins a panel of experts to explore how families are adapting to this shifting landscape. With the $13.61 million U.S. estate tax exemption set to expire at the end of 2025, family offices are facing heightened legal and tax exposure, increasingly sophisticated structures and, most importantly, the human dynamics at the heart of every transition.  

Despite the high stakes, many families remain unprepared. According to a 2024 RBC Wealth Management Report, only 53% of family offices have a succession plan in place, and fewer than half of those are formal, written strategies. Top challenges include preparing the next generation, identifying suitable successors, and aligning across a complex web of personalities, priorities, and governance frameworks.   

Michael emphasizes that the emotional side of succession is just as vital as the financial side. “Human capital is probably the biggest asset on a family’s balance sheet,” he said. “The members of my family —are they thriving? What are their hopes and wishes? And how are their relationships with each other?” Without first addressing these questions, even the most robust plans can unravel into a thicket of misunderstandings or worse.  

With potential tax policy shifts on the horizon, families need to accelerate their planning efforts. Michael underscores the importance of early engagement, particularly of heirs who have not yet been involved, to ensure they understand the rudiments of what they stand to inherit and how to steward it. One strategy he recommends: bringing succession candidates into the family office for a trial-period to assess fit, foster connection, and build leadership readiness, while proactively seeking input from all adult family members in order to surface and resolve differences in perspective.  

Read the full article to explore how today’s family offices are preparing for tomorrow’s leadership transitions (behind a paywall).