FAILING to plan, whether for income or capital taxes, education costs or retirement, tends to create unpleasant surprises. A neglected succession strategy or insufficient insurance can seriously damage your wealth, writes Michael Proudfoot, a director at the Kendal office of Lonsdale & Partners Chartered Accountants, in his latest article for Business Gazette.

That is why it does not pay to avoid confronting such financial challenges until they arise.

Instead, you should establish and review an overall wealth management plan, to minimise the occurrence of unexpected costs.

Besides tax planning, here are some other critical elements of an overall wealth management plan: Succession planning All business owners should have a strategy to sell their business or to pass their business interests on within their family. Integrating an exit strategy into your estate plan is essential to protect your assets and your company's ongoing success.

Your professional adviser can assist you in reviewing or developing your plans in this important area.

Investing While tax efficiency may be a key factor when investing in a pension or an ISA, there are many other issues that influence a strategy to make your money work as hard as you do. These will include establishing your investment horizon, finding a comfortable risk level, and marshalling your assets among stocks and shares, unit trusts, bonds, cash and cash equivalents, property, life insurance, and other investments.

Protecting assets Being prepared to shield your assets is more important than ever before, and the key is to execute plans before claims arise.

Potential strategies to discuss with your professional advisers include transferring assets to your spouse, the use of trusts and even your retirement plan.

Life insurance Life insurance takes many forms including term, whole life and mortgage protection, as well as serious illness and disability insurance.

Along with protecting your family's financial future, a well-conceived life insurance policy can provide liquidity to pay inheritance tax, equalise estates passing to children who are not involved in a family business, and efficiently pass funds on to succeeding generations.

Wealth management is not something you can afford to ignore or put off until tomorrow.