How to Choose the Right Business Succession Planning Lawyer for Your Situation

If you’re like most business owners, you’ve probably had this thought at some point:
“I know I need to plan for the future. I just don’t know where to start.”

And once you realize that succession planning is too complex and too important to DIY, the next question usually follows:
“How do I choose the right lawyer to help me do this?”

It’s a fair question. Because not all lawyers are created equal. And succession planning is too personal, too strategic, and too vital to leave in the hands of someone who doesn’t understand your business or your family.

So today, let’s break it down.

In this post, I’ll walk you through how to choose a business succession planning lawyer who fits your situation. Not just any lawyer. The right one.

First, Understand What’s At Stake

Before you even start your search, it helps to get clear on what you’re protecting.

Business succession isn’t just about who takes over when you retire. It’s about:

• Preserving your company’s value

• Preventing family disputes

• Minimizing tax burdens

• Protecting your employees

• Ensuring continuity for your clients

• Passing down your values, not just your assets

In other words: it’s not just legal work. It’s legacy work.

And that’s why choosing the right attorney matters.

What Makes Succession Planning So Unique?

Succession planning is not the same as estate planning. Not exactly.

Sure, there’s overlap, especially when your business is a major part of your estate. But business succession requires a deeper understanding of:

• Corporate structures and business law

• Ownership transitions

• Partnership agreements and buyouts

• Tax strategies for business assets

• Family dynamics in the workplace

• Management continuity

• Employment contracts and incentives

This isn’t just about transferring wealth. It’s about ensuring your company doesn’t fall apart or get torn apart when you step back.

7 Qualities to Look For in a Business Succession Planning Lawyer

Let’s talk about what really matters when choosing legal counsel for this journey.

1. Relevant Experience with Businesses Like Yours

Not all business structures are alike.

A lawyer who works mostly with large corporations may not understand the nuances of your family-owned construction company. Someone who only drafts wills may not know how to navigate a multi-owner medical practice.

Ask:

• “What types of businesses have you helped with succession planning?”

• “Have you worked with family-owned businesses?”

• “Do you understand partnership dynamics?”

• “Can you help with a phased retirement or employee transition?”

Look for someone who has walked the path you’re on, not just studied it.

2. Deep Understanding of Tax and Estate Planning

One of the biggest threats to a successful transition? Taxes.

Capital gains tax. Estate tax. Gift tax. Income tax on buyouts. Without proper planning, you or your heirs could be hit hard.

The right lawyer will:

• Coordinate with your CPA and financial advisor

• Identify tax-saving structures (like irrevocable trusts, FLPs, GRATs, and buy-sell funding)

• Plan for liquidity needs in the event of death or disability

• Understand how business value impacts your estate

If a lawyer shrugs off tax strategy or says, “That’s your accountant’s problem,” walk away.

3. Excellent Communication Skills

This isn’t just paperwork. It’s a process. One that may involve difficult family conversations, sensitive financial disclosures, and long-term decision-making.

Your lawyer should be able to:

• Explain complex legal concepts in plain English

• Listen carefully to your concerns and goals

• Facilitate meetings with family, partners, or employees

• Stay accessible and responsive

You don’t need someone who’s just technically competent. You need someone who can communicate clearly, calmly, and compassionately.

4. Willingness to Understand Your Values

Succession isn’t one-size-fits-all.

Some owners want to maximize sale value. Others want to keep the business in the family. Some care most about employees. Others prioritize retirement income or charitable giving.

Your lawyer should start by asking:

• “What matters most to you?”

• “What do you want to protect?”

• “What does a successful transition look like, not just legally, but emotionally?”

They should understand that your business isn’t just a set of contracts. It’s your life’s work.

5. A Proactive, Not Reactive, Approach

Great succession lawyers don’t just answer your questions. They ask the right ones before you do.

They’ll raise issues like:

• What happens if your chosen successor leaves the company?

• What if a family member gets divorced and their ex tries to claim ownership?

• What happens if you die before the plan is finalized?

• How should ownership and control be separated?

Look for a lawyer who thinks ahead. Who sees the angles. Who anticipates not just your next move, but your next five moves.

6. A Collaborative Mindset

Succession planning is a team sport.

It involves your CPA, financial advisor, insurance agent, and possibly your business consultant or family coach.

Your lawyer should be able and willing to:

• Work as part of an advisory team

• Coordinate timelines

• Share documents securely

• Ensure everyone is aligned

If they insist on working in a vacuum, it’s a red flag. You need an integrated plan, not a siloed set of documents.

7. Commitment to Long-Term Relationship

Succession planning isn’t a “set it and forget it” kind of deal.

Your goals may evolve. Tax laws will change. Your family may grow. The business may pivot.

You want a lawyer who offers:

• Annual or biannual plan reviews

• Document updates as needed

• Ongoing counsel for leadership transitions

• Support for your successors, if necessary

This is a partnership, not a transaction.

Red Flags to Watch Out For

Now that we’ve covered what to look for, let’s quickly hit what to avoid:

• One-size-fits-all plans: Your business is unique. Your plan should be too.

• Lack of real-world business knowledge: Law school alone doesn’t cut it.

• Too much legal jargon: If you’re confused now, imagine how your heirs will feel.

• Unwillingness to talk about family dynamics: Avoid lawyers who treat emotions like distractions.

• No clear process or timeline: If they can’t explain how the planning process works, don’t expect them to guide you through it smoothly.

Questions to Ask Before You Hire

Here’s a list of great questions to ask in your first meeting:

• Have you handled succession planning for companies in my industry?

• Can you help me prepare for both voluntary and emergency transitions?

• How do you work with my other advisors?

• What’s your process for planning and implementing the transition?

• How do you approach sensitive family or partner dynamics?

• Will you help facilitate conversations with my family or team?

• Do you offer ongoing updates or plan reviews?

• What do you need from me to get started?

Listen not just to the answers, but to the way they respond. Are they engaged? Thoughtful? Listening more than they talk? That’s your signal.

Matching Legal Expertise to Your Business Structure

One of the biggest reasons business owners get burned during succession planning is because they hire a lawyer who doesn’t understand their business structure or how it impacts the succession process.

Succession planning for a family-owned LLC is very different from planning for a multi-shareholder C-corp.

If your lawyer doesn’t grasp the nuances of your legal entity or how state laws affect your transition strategy, you’re taking unnecessary risks.

Here’s how different structures impact succession:

• Sole Proprietorships often require full estate planning integration because the business is the owner. Succession often involves selling assets, transferring licenses, and managing income continuity.

• LLCs (Limited Liability Companies) allow for flexible ownership transfers and voting rights, but operating agreements must be rock solid. If your lawyer doesn’t review or revise this document, you may accidentally give control to someone you never intended.

• Partnerships demand detailed buy-sell agreements and funding plans. Whether you’re in a general, limited, or LLP setup, your exit strategy needs to be mutually agreed upon and legally enforceable.

• S-Corps and C-Corps involve stock transfer issues, tax considerations, and often more complex board structures. A lawyer unfamiliar with shareholder rights or valuation clauses may leave costly gaps.

Your lawyer should be able to walk you through how your structure shapes everything from tax outcomes to voting rights to sale mechanics. If they don’t ask what kind of entity you run or brush off its importance, it’s a red flag.

Real-World Scenarios That Require Specialized Planning

Choosing the right lawyer also depends on your specific goals and potential challenges.

➤ You’re Passing the Business to One Child but Not the Others

This situation is a classic source of family tension. You’ll need a lawyer who can:

• Use trusts to manage ownership without conflict

• Create clear compensation structures for participating vs. non-participating heirs

• Facilitate family meetings to discuss the plan openly

Not every attorney is equipped to handle that level of complexity or emotional nuance.

➤ You Want to Sell to a Key Employee or Management Team

An internal sale (also called a management buyout) is a great option, but it’s not simple.

You’ll need a lawyer who can:

• Structure installment sale agreements

• Align ESOP or profit-sharing programs

• Work closely with your CPA to manage tax implications

• Ensure proper transition of intellectual property and goodwill

Look for someone with experience in buyouts, not just estate law.

➤ You Have Silent Partners or Passive Investors

Many owners forget to plan for how passive investors or equity holders will be treated during a transition.

The right lawyer will:

• Review (and possibly revise) shareholder or investor agreements

• Protect minority interests without compromising your control

• Draft clauses for triggering events (death, divorce, bankruptcy)

This protects your company from instability if things go sideways.

➤ You Plan to Sell to a Third Party

If your exit strategy involves selling to an outside buyer, you’ll need a lawyer who:

• Can clean up your corporate books and legal docs for due diligence

• Protects confidentiality and intellectual property in sale negotiations

• Coordinates with brokers and valuation experts

• Ensures favorable tax treatment on the sale

If your lawyer’s only experience is with trusts and wills, they won’t be ready for the demands of a business sale.

Aligning Your Business Plan with Your Personal Plan

Too many owners create a business succession plan and a personal estate plan separately.

Here’s the problem: these two plans are deeply connected.

If your succession plan says the business goes to your daughter, but your estate plan divides all assets equally among your children with no explanation, you’ve just created a roadmap for resentment.

A skilled succession lawyer ensures your business and personal estate planning are coordinated, including:

• Trusts and wills that match your business intentions

• Life insurance strategies that support liquidity or balance inheritances

• Advance healthcare directives and POAs for business decision-making

• Tax minimization across both personal and corporate assets

You want your plans to reflect a unified vision, not a patchwork of conflicting instructions.

The Best Time to Hire a Lawyer? Yesterday.

Let’s be honest: succession planning rarely feels urgent until it is.

That’s why the best business owners don’t wait for a triggering event. They plan early, review often, and adjust as needed.

Starting early gives your lawyer time to:

• Understand your company dynamics

• Build relationships with your team and advisors

• Help develop your successors (not just name them)

• Make meaningful tax moves over multiple years

• Craft contingency plans that evolve with your business

Whether you’re 40 or 70, the right time to start isn’t when you’re ready to leave. It’s when you’re ready to lead intentionally toward that moment.

Related Reading: How a Business Succession Lawyer Prepares You for the Unexpected

Your Business Deserves the Right Kind of Help

You’ve worked too hard to build what you’ve built to leave your future up to chance or to the wrong lawyer.

A great business succession planning lawyer helps you:

• Clarify your goals

• Protect your people

• Preserve your wealth

• Reduce conflict

• Pass down something that lasts

It’s more than legal advice. It’s legacy stewardship.

So if you’re ready to take the next step, start by asking the right question:
“Who’s the lawyer that truly understands my business, my family, and my future?”

When you find that person, you’ll know. And your family will thank you for it.

Ready to secure your company’s future? Contact us at Hackard Law today. Our team will help you design a succession plan that protects your business, your family, and your legacy.