How a Business Succession Lawyer Prepares You for the Unexpected

Let me tell you a story.

A few years ago, a client, let’s call him Mark, came to us after his business partner suffered a sudden heart attack. No warning. No prior conditions. Just a phone call and a life turned upside down.

Mark and his partner had built their company from the ground up. But they had never gotten around to signing a buy-sell agreement. No plan for what to do if one of them could not come back. And now, Mark was left juggling operations, uncertain ownership, and a grieving family.

His words stuck with me:
“We were always going to handle it next quarter.”

We hear that a lot. “Next quarter.” “Next year.” “After tax season.”

But the truth is, life does not wait for your schedule. Unexpected things happen, to good people, to great businesses, and often without warning.

That is why having a business succession planning lawyer on your team is not just smart, it is essential.

Let’s talk about how a business succession planning lawyer helps you prepare for the unexpected and why planning today is one of the best investments you will ever make in your company’s future.

First, What Do We Mean by “Unexpected”?

In the world of business, the unexpected is not some far-off possibility. It is an inevitability. Over the years, I have seen businesses upended by:

A sudden illness or accident
A partner’s divorce or bankruptcy
A key employee walking away
A founder’s unexpected death
A family dispute that escalated overnight
A mental health crisis or addiction
IRS audits, lawsuits, or buyout battles

Most of these events were not predictable. But they were all survivable with the right plan in place.

What Happens When There’s No Succession Plan?

Here is the hard truth: when a business owner or partner is suddenly out of the picture, and no plan exists, things fall apart fast.

Ownership confusion: No one knows who has legal control.
Employee panic: Morale drops, and key team members start looking elsewhere.
Family disputes: Spouses or children try to claim leadership or income.
Financial chaos: Banks freeze accounts. Payroll is delayed. Taxes go unpaid.
Client loss: Customers sense instability and start pulling away.

Even businesses with solid revenue and strong teams can unravel under this kind of pressure. Because when there is no clear leadership, no legal structure, and no roadmap, people freeze, fight, or flee.

And all of it is preventable.
Related Reading: Debunking Legal Myths About Business Succession Lawyers

What a Business Succession Planning Lawyer Actually Does

Now let’s get practical.

A business succession planning lawyer helps you build a legal and operational plan for what happens if you cannot be there. It is like insurance, but instead of just writing a check, it keeps the company running.

Here’s what that includes:

1. Drafting or Updating a Buy-Sell Agreement

If you have business partners, this is the foundation of your contingency plan.

A buy-sell agreement defines:

What happens if a partner dies, becomes disabled, or wants to leave
How the business will be valued
Who has the right to buy, and on what terms
Whether ownership can pass to a spouse or children

We have seen buy-sell agreements prevent major legal battles, save relationships, and ensure that ownership transitions fairly, even in emotional moments.

2. Appointing Backup Decision-Makers

What if you are in the hospital, unable to make decisions?

A business succession lawyer helps you create:

Durable power of attorney for financial matters
Healthcare directives in case medical decisions must be made
Corporate resolutions granting authority to key employees or family

That way, someone you trust, not a judge or estranged relative, can step in and keep things moving.

3. Structuring Ownership for Flexibility and Protection

Sometimes, businesses are still owned entirely in the founder’s name. That might work while you are healthy, but if something happens, your company could end up tied up in probate court for months or even years.

A succession lawyer may recommend transferring ownership into:

A revocable living trust (to avoid probate)
A family limited partnership (to simplify transfers)
A corporate holding structure (to reduce risk and taxes)

These structures also help prevent inheritance disputes, enable gifting, and protect the business from lawsuits or divorce.

4. Minimizing Tax Exposure in the Event of Death or Sale

The IRS does not care if your business was passed down with love and good intentions. If there is value and no plan, your heirs could face a hefty estate tax bill.

A succession lawyer works with your CPA to create a tax-efficient transfer strategy, including:

Valuation discounts for minority ownership
Gifting strategies under the annual exclusion
Use of irrevocable trusts or charitable vehicles
Coordinating life insurance for liquidity

The goal is to avoid fire sales and keep the business intact, even during transition.

5. Facilitating Family and Team Communication

Sometimes the biggest threat to a business is not death or taxes, it is silence.

We have seen businesses destroyed by unspoken assumptions, especially in family-owned companies:

One child assumes they will take over
Another expects to cash out
A spouse is left guessing what their role should be

Succession lawyers help facilitate clear communication, so everyone knows the plan before they need it.

That might mean:

Hosting family meetings
Drafting legacy letters
Defining management roles and compensation
Balancing fairness vs. equality in inheritances

Transparency does not just prevent confusion. It preserves relationships.

Real-Life Example: A Crisis Averted

Let me tell you about Linda.

Linda owned a thriving retail business. She had one daughter who worked in the company, and two sons who did not. She always meant to create a succession plan, but between inventory, staffing, and vendor contracts, it kept getting pushed to the bottom of her list.

Then she had a stroke.

Thankfully, six months earlier, we had helped her:

Transfer ownership into a living trust
Grant power of attorney to her daughter
Update the corporate bylaws with succession language
Draft a letter of instruction for the family

As a result:

Her daughter was able to keep the business running
Her sons were informed, included, and supportive
The company retained its employees and vendors
Linda’s estate avoided probate

That is what preparation does. It does not make you immortal, it just keeps your life’s work from disappearing when you are not around to protect it.

Who Needs This Kind of Planning?

The short answer? Anyone who owns a business and wants it to outlive them.

More specifically:

Founders over age 50 with no clear successor
Partners without buy-sell agreements
Owners with health concerns
Family businesses with multiple heirs
Solo entrepreneurs whose absence would halt operations
Businesses planning for future sale

If that is you, the time to plan is not next year. It is now.

What Does the Process Look Like?

At Hackard Law, here is how we guide clients through succession planning:

1. Discovery
We learn about your business, your team, your family, and your vision for the future. We ask questions others overlook.

2. Strategy Design
We work with your CPA and advisors to craft a custom plan, legal, operational, and tax-aware.

3. Document Drafting
We draft or revise your core documents:

Buy-sell agreement
Operating agreements
Trusts and wills
Corporate resolutions
Powers of attorney

4. Implementation
We help you execute the plan, communicate with stakeholders, and prepare your successors.

5. Maintenance
As life changes, we review and update your plan. Because flexibility is part of good planning.

What Business Owners Often Miss When Planning for the Unexpected

When you are deep in the daily grind of running your company, it is easy to focus on growth, sales, and hiring. The “what ifs” often feel like distractions. But here is the truth: it is not just about what might happen to you, it is about what will happen to your business without you.

Here are a few areas where a business succession lawyer fills critical gaps most owners miss:

1. Interim Leadership Planning

Many owners assume that if something happened to them, someone, like their spouse or a trusted employee, would simply step in.

But legally, that is not how it works.

Without a formal plan:

Your spouse may not have the legal authority to access company accounts or contracts.
A senior employee might not be authorized to make high-level decisions.
No one may have signing power for payroll or vendor payments.

A business succession lawyer helps you appoint temporary leadership with legally enforceable authority so the business does not stall during a crisis.

2. Emergency Financial Access

Imagine your family cannot access your business bank account because everything is in your name alone.

We have seen situations where:

Payroll could not be processed
Vendors stopped shipping due to unpaid invoices
Credit lines were frozen
Contracts were delayed because no one had authority to sign

This is where business powers of attorney, corporate banking authorizations, and emergency financial controls come in.

3. Handling Debts, Guarantees, and Personal Liability

Many owners do not realize how deeply their personal name is tied to the business.

You might be a personal guarantor on a lease or credit line.
Your name may be on vehicle loans, supplier accounts, or insurance policies.
You might have pledged personal assets for business loans.

If something happens to you, creditors may seek repayment immediately or from your estate.

A business succession planning lawyer works to:

Separate personal and business liabilities where possible
Create continuity plans for creditor communication
Shield your family from unnecessary legal and financial exposure

4. Protecting Intellectual Property and Business Assets

In modern companies, especially creative, tech, and service firms, intellectual property (IP) is everything.

That includes:

Trademarks and copyrights
Software code or proprietary systems
Client databases
Vendor contracts
Branding, marketing materials, and trade secrets

Too often, these assets are tied to an individual (you) and not properly assigned to the business entity.

A succession lawyer ensures:

All IP is properly assigned to the business entity
Documentation is centralized and accessible
Licensing and operational rights can continue without you

Without this, the business could be stuck in legal limbo or lose the very tools that make it valuable.

Common Myths That Put Businesses at Risk

❌ “My spouse will take over if something happens to me.”
Unless your spouse is legally designated, has proper business authority, and knows the company, this creates confusion. Without a written plan, the court decides what happens.

❌ “My employees know what to do.”
Even if they know the business, they may not have legal authority to run it. A well-prepared plan gives them authority and spells out roles clearly.

❌ “We already have life insurance, so we are covered.”
Insurance is a great tool, but it is not a plan. It does not tell you who gets what, who takes charge, or how to protect operations. It is the funding, not the blueprint.

❌ “My family will do the right thing.”
They might, but they will be grieving, stressed, and unprepared. Planning removes the burden from them and gives them confidence when they need it most.

Case Study: The Company That Survived a Tragedy

“Rich” owned a mid-sized construction company. Ten trucks. Forty employees. Lots of equipment. He was only 52, healthy, active, and not ready to retire.

But he had seen too many peers die suddenly or lose control of their businesses. So, he came to us.

We worked together to:

Create a buy-sell agreement with his partner
Set up key man insurance
Transfer business assets into a revocable trust
Assign power of attorney to his CFO
Train his son in project management

A year later, Rich was killed in a traffic accident.

Because of the plan we built:

His partner bought out his share smoothly
His family received the full value of his equity
His son stepped into an operational role
The company did not lose a single contract

That is what good planning does.

Final Thoughts: Don’t Let the Unexpected Win

You did not build your business on luck. You built it with vision, work ethic, and a willingness to think ahead.

So do not leave its future to chance.

A business succession planning lawyer helps you turn uncertainty into clarity so that even when life throws the unexpected your way, your business does not skip a beat.

At Hackard Law, we have walked this road with founders, partners, and families from all walks of life. And we would be honored to help you walk it too, before a crisis forces your hand.

Let’s get your plan in place. Because the best time to prepare for the unexpected is while everything is still going right.

Ready to safeguard your company’s future? Contact us at Hackard Law today to start building a business succession plan that protects your business, your family, and your legacy.