Do You Need a Business Succession Planning Lawyer? Find Out

If you own a business, chances are you’ve already asked yourself one version of this question:
“What happens to this place when I’m no longer running it?”

It might hit you in a quiet moment, on a late-night walk, during a vacation, or while reviewing your financials. Or maybe it comes hard and fast, after a health scare, a business partner’s death, or a conversation with your child that ends in, “Dad, I love you, but I’m not taking over.”

And once that thought lodges in your mind, the next question follows:
“Do I need a business succession planning lawyer?”

If you’re asking the question, chances are, it’s time.

In this post, we’ll break down what succession planning lawyers really do, who needs them, and the telltale signs that it’s time to get one on your team. This isn’t about pressure, it’s about peace of mind because the legacy you’re building deserves more than guesswork.

What Does a Business Succession Planning Lawyer Do?

Let’s cut through the fluff.

A business succession planning lawyer helps you plan and legally structure the transfer of your business, whether you’re selling, retiring, stepping back, or preparing for the unexpected.

That includes things like:

• Creating a roadmap for leadership or ownership transition

• Drafting or updating buy-sell agreements

• Setting up trusts to hold business interests

• Coordinating with your CPA and financial advisor on tax strategy

• Establishing management roles and successor training

• Facilitating family conversations to avoid future conflict

• Creating contingency plans for disability or early exit

It’s not just about writing legal documents. It’s about designing a process to protect your company, your family, and your peace of mind.

Think of it like this: Estate planning protects your personal legacy. Business succession planning protects your business legacy and the people it impacts.

So… Do You Actually Need One?

Here are some key signals that it’s time to call a succession planning lawyer.

1. Your Business Is a Major Part of Your Wealth

For most small-to-midsize business owners, the business is the estate.

If 60–80% of your net worth is tied up in your company, then passing it on is a critical move, not just for you, but for your spouse, children, and future generations.

A succession lawyer helps you protect that wealth by:

• Structuring ownership properly

• Planning for estate and capital gains taxes

• Creating liquidity (so heirs don’t have to sell under pressure)

• Avoiding court intervention

In short? If your business is your retirement plan, then you need a succession plan.

2. You’re in a Partnership or Multi-Owner Business

A company with more than one owner needs more than handshake deals and assumptions.

What happens if one partner wants out, another dies, or a partner gets divorced and their ex now owns part of the business?

A business succession lawyer will create or update your buy-sell agreement, a legal contract that defines how ownership changes hands and how the business is valued.

This is about preserving trust, keeping things clean, and ensuring your partners’ families don’t inadvertently become business partners.

3. You Have Family Involved (Or Hope They Will Be)

Family businesses are special, but they’re also sensitive.

You might have kids working in the business. Others who aren’t. A spouse who helps out. Or a nephew who thinks he’s next in line.

These relationships are complex. And when left unstructured, they can tear families apart.

A succession lawyer can:

• Help you split assets fairly (not always equally)

• Establish roles, responsibilities, and compensation for family members

• Protect the business from future family drama

• Create trusts or entities to hold and manage ownership shares

The goal? Keep the business strong and the family together.

4. You’ve Had a Health Scare or Know Someone Who Did

I’ve worked with clients who put off succession planning for years… until a heart attack, cancer diagnosis, or car accident changed everything.

Here’s what I tell them: Planning before a crisis gives you power. Planning after a crisis limits your options.

A succession lawyer helps you:

• Assign powers of attorney for business decisions

• Appoint backup leadership

• Build contingency plans for short-term incapacity

• Avoid rushed decisions under pressure

If you’ve had a wake-up call or just turned 60, this is the moment to start.

Related Reading: Preparing for the Unexpected with an Estate Lawyer — learn how proactive legal planning brings clarity and protection when life takes an unexpected turn.

5. You Want to Retire (Someday)

Retirement isn’t just an age, it’s a mindset.

You might want to travel more, reduce your hours, or leave the business entirely. But how you step back matters just as much as when.

Succession planning lawyers work with you to:

• Design a phased retirement strategy

• Identify and train future leaders

• Establish compensation or buyout terms

• Minimize taxes during the transition

• Prevent confusion among employees, vendors, and clients

The result? A smoother transition and a stronger business that doesn’t depend solely on you.

6. You’re Thinking About Selling in the Next 5–10 Years

Most successful business sales aren’t last-minute events. They’re years in the making.

A succession lawyer can help you:

• Organize your entity structure to attract buyers

• Protect your intellectual property

• Identify and fix legal liabilities

• Prepare for due diligence

• Work with your CPA to reduce tax on the sale

We’ve seen owners sell their companies for millions more just because they were prepared. And we’ve seen others lose deals because the legal mess was too big to touch.

You don’t want to be in the second group.

7. You Haven’t Looked at Your Business Plan in Years

If your operating agreement, shareholder terms, or ownership documents haven’t been updated in 10+ years, odds are they’re out of date and possibly dangerous.

Your partner might be listed as sole manager, your spouse may not be mentioned at all, and you may have added new shareholders without updating your agreements.

A good succession lawyer will:

• Conduct a full review of your current documents

• Identify legal gaps, risks, and outdated clauses

• Help you update everything for today’s business, not the one you had in 2008

Think of it as a legal tune-up. And just like a car, waiting too long usually means something breaks.

What Happens If You Don’t Plan?

Here’s the short version: Without a succession plan, things fall apart.

No leadership structure → employees panic, clients leave.
>No ownership plan → the business lands in probate or litigation.
>No tax plan → heirs owe the IRS more than they can pay.
>No transition strategy → years of hard work unravel in months.

We’ve seen it happen to good people. Smart people. People who just “ran out of time.”

It doesn’t have to be that way.

How to Choose the Right Succession Planning Lawyer

Not all lawyers are created equal. Here’s what to look for:

Business Experience
They should know business law inside and out LLCs, S-Corps, partnerships, you name it.

Tax-Aware
They don’t have to be a CPA, but they should understand estate, gift, and capital gains tax implications.

Family-Savvy
If you have family involved, make sure they’ve handled similar dynamics. This isn’t just law, it’s psychology.

Collaborative
Your lawyer should work seamlessly with your CPA, financial planner, and insurance advisor. Succession is a team sport.

Long-Term Focus
Avoid one-and-done attorneys. You want someone who’ll review and update your plan as things change.

What the First Meeting Looks Like

At Hackard Law, the first meeting is simple. No pressure. No jargon. Just conversation.

We ask:

• What does success look like for you?

• Who matters most in this transition?

• What legacy do you want to leave behind?

Then we help you start building that future on your terms, with the right tools.

Employee Retention and Communication: Your People Need to Know What’s Next

If you’re like most business owners, your company isn’t just a product or a service, it’s people.

Your employees are the ones answering the phones, building the product, managing the accounts, and representing your reputation every single day. And when you’re ready to step back, they’re the ones who wonder:
“What happens to me?”

One of the most overlooked parts of business succession planning is internal communication how and when to share the plan with your team.

Some owners hold everything close to the chest. Others tell too much, too soon. The sweet spot lies somewhere in between a clear, confident communication strategy that:

• Reassures key employees that the business is strong and secure

• Explains who is taking the reins, and when

• Confirms that roles, benefits, and culture will remain consistent

• Builds trust and buy-in during the transition

A succession planning lawyer helps you time this message properly. We also help you retain your most important people by crafting incentive-based retention agreements, such as:

• Stay bonuses for key team members

• Equity grants or phantom stock

• Long-term incentive plans that reward performance through the transition

This helps ensure that when you hand off the business, your most valuable human capital doesn’t walk out the door right behind you.

The Emotional Side of Letting Go

We need to talk about something most lawyers won’t bring up: letting go is emotional.

For many entrepreneurs and family business owners, stepping back from the business doesn’t feel like a financial decision, it feels like an identity crisis.

This isn’t just about ownership or titles. It’s about purpose. Routine. Pride. Legacy. Control.

And it’s okay to admit that handing over the business, even partially, feels uncomfortable.

We’ve worked with owners who wrestle with questions like:
“Who am I without this?”
“Will they run it the way I did?”
“What if the business changes after I’m gone?”
“Will I still matter when I’m not in charge?”

Here’s the truth: You’re not alone.

That’s why part of the succession planning process is emotional as well as legal. A good lawyer doesn’t rush you or pressure you, they walk beside you, step by step. They help you:

• Phase your exit in stages, not all at once

• Define a continuing role (consultant, board member, mentor)

• Put boundaries around decision-making and involvement

• Communicate expectations clearly with successors

Succession isn’t an end. It’s a pivot, from operator to elder, from day-to-day leader to long-term visionary. That’s a role worth preparing for.

What a Well-Executed Succession Plan Actually Looks Like

Let me tell you a story that shows how powerful a solid succession plan can be.

A few years ago, we worked with a family-owned HVAC company. The founder, Jim, had built the business from the ground up over 30 years. His two sons worked in the company. His daughter didn’t, but she supported the business from a distance.

Jim knew he wanted to retire in five years, but he didn’t want to rush his kids or trigger a family feud.

Here’s what we did:

Family Meetings
We hosted a series of guided discussions with Jim and his children to talk about goals, fears, and expectations. Everyone got to be heard.

Succession Structure
We created a plan where one son would become CEO, the other would run operations, and the daughter would receive non-voting shares and other assets to ensure fairness.

Trust and Estate Alignment
We restructured the company’s ownership into a family trust and created funding mechanisms so that future generations could receive dividends without controlling the company.

Training Timeline
Over 18 months, Jim reduced his involvement gradually, transitioning client relationships, introducing his sons in leadership meetings, and sitting back more often.

Exit and Retirement
On his 65th birthday, Jim stepped away completely, moved to Arizona, and became an advisor to the business, not a manager.

Here’s what didn’t happen:

• There was no courtroom drama.

• There were no fights about “what Dad wanted.”

• There was no financial crisis or emergency.

Why? Because Jim planned ahead, asked for help, and trusted the process.

That’s what succession planning can do.

This Is About More Than Your Business

Succession planning isn’t just a legal exercise.
It’s how you say:
“This business matters.
The people who helped build it matter.
The people who depend on it matter.”

If that sounds like you, then yes, you probably need a succession planning lawyer.

And if you’re ready to start that conversation, we’re here when you are. Contact Us at hackardlaw.com