Top 5 Mistakes to Avoid When Hiring a Succession Lawyer

I’ve had business owners walk into my office carrying a stack of legal paperwork and one looming question:

“Did I hire the wrong lawyer?”

Sometimes, the answer is yes. Other times, it’s more nuanced: “You hired the right lawyer for the wrong job.” The real problem? Most people don’t know how to tell the difference. And when it comes to your business, guessing wrong can cost you everything.

Because here’s the truth: business succession planning is not just estate planning with a few extra forms. The survival of your company matters. You need to ensure your family, employees, and clients aren’t thrown into chaos if something happens to you. Protecting your life’s work is the goal.

So today, let’s walk through the top 5 mistakes to avoid when hiring a business succession planning lawyer, and what the right lawyer actually does to protect your legacy.

Mistake #1: Hiring a General Estate Planning Lawyer Without Business Experience

One of the most common missteps is assuming an estate planning lawyer can handle business succession. Estate attorneys often excel at wills, trusts, and probate avoidance. But they may lack expertise in:

LLCs, S-corporations, and partnerships
Buy-sell agreements
Entity restructuring
Intra-family transfers and gifting
Business valuation methods
Tax strategies for privately held companies

Without this experience, your family could end up in probate court, your business frozen, and your employees panicked.

What to do instead: Ask whether the attorney has worked on succession plans for businesses like yours. If they hesitate, keep looking.

Mistake #2: Focusing Only on Documents, Not People

Well-drafted documents are important, but documents that reflect real life are essential.

I once saw a plan that gave equal company shares to three children—even though only one worked in the business. The result was conflict, resentment, and financial strain.

A good succession lawyer will:

Ask deep questions about your values and vision
Consider your team, culture, and goals
Clarify who should lead and why

Succession planning is as much about people as it is about paperwork.

Mistake #3: Ignoring Tax Consequences

Taxes can devastate an otherwise solid plan. Estate taxes, capital gains, and income taxes on buyouts can cripple families if not addressed.

A business succession planning lawyer should collaborate with your CPA and advisors to minimize exposure, using strategies like:

Valuation discounts
Gifting strategies
Irrevocable trusts
Family limited partnerships

If a lawyer treats taxes as an afterthought, it’s a red flag.

Mistake #4: Procrastinating (or Hiring Someone Who Lets You)

Succession planning is uncomfortable. That’s why many owners delay it until it’s too late.

The best lawyers balance empathy with urgency. They create timelines, provide checklists, and hold you accountable.

Because the earlier you start, the more options you have—and the smoother your transition will be.

Mistake #5: Overlooking Emotional Dynamics

Most succession plans fail because of people, not paperwork. Rivalries, resentment, and unrealistic expectations can derail even airtight legal documents.

Great lawyers anticipate these issues by:

Facilitating family meetings
Drafting personal letters of explanation
Offering balanced inheritance strategies

They prepare your family emotionally, not just legally.

Bonus Mistake: Treating Succession Planning as One-and-Done

Markets shift, tax laws change, and families evolve. Your plan needs regular review and updates.

A great lawyer is not a one-time advisor but an ongoing partner—reviewing, refreshing, and adjusting as needed.

What a Great Business Succession Planning Lawyer Really Does

The right lawyer doesn’t just draft documents. They:

Understand your business model
Bridge generations
Coordinate advisors
Protect against legal and tax risks
Preserve family unity

Succession planning isn’t just legal work—it’s human work.

Don’t Forget Key Employees

Key staff often worry during transitions. Without clarity, they may leave, destabilizing your company.

Smart planning includes:

Retention bonuses
Incentive programs
Training and mentorship opportunities

A succession lawyer helps secure your team alongside your family.

Don’t Let Buy-Sell Agreements Collect Dust

For multi-owner businesses, a buy-sell agreement is essential. Outdated agreements can spark disputes and mispricing.

Your lawyer should regularly review and update it to reflect your company’s value and ownership structure.

Choose a Lawyer Who Honors What You’ve Built

If you’ve built something worth passing on, succession planning is essential—and choosing the right lawyer is just as important.

Choose someone who:

Knows business law
Knows tax law
Knows family dynamics
Knows how to listen

At Hackard Law, we’ve guided countless business owners through this process. We’ve seen what works and what doesn’t. And we’re here to help you get it right.

Because succession planning isn’t just about exit strategy.
>It’s about legacy.
>It’s about leadership.
>It’s about leaving something behind that’s worth more than money.

Ready to protect your business and family’s future? Contact Hackard Law today. Let us help you design a succession plan that honors your legacy.