What Does a Business Succession Planning Lawyer Do?

When people ask me what I do, and I tell them I’m a business succession planning lawyer, they usually nod politely, then ask:

“So… that’s like a will, but for your business?”

Yes. And no.

Because succession planning is about much more than paperwork. Protecting your life’s work means ensuring your family isn’t left in chaos and preparing your business not just to survive you, but to thrive without you.

If you’ve built something worth passing on, then this post is for you. Let’s talk about what business succession planning really is, why it matters, and what a good lawyer does to make the process work before it’s too late.

The Truth About Succession: Most Business Owners Don’t Have a Plan

Over 70% of small business owners have no formal succession plan in place, according to the Exit Planning Institute.

That’s staggering when you consider that many of these businesses:

Support multiple generations of the same family
Employ dozens or even hundreds of people
Represent decades of blood, sweat, and risk
Account for the majority of the owner’s retirement wealth

So why the gap? Because succession planning feels complicated. Emotional. Uncomfortable.

“I’m not ready to retire yet.”
“I don’t know if my kids can handle the business.”
“It’s too early to talk about selling.”
“I don’t even know where to start.”

That’s where a business succession planning lawyer comes in.

What Is a Business Succession Planning Lawyer?

In plain terms, a business succession planning lawyer helps you create a legal, financial, and operational roadmap for what happens to your business when you step back or step down.

That might be due to retirement, disability, death, or even a planned sale or transition. But what we’re really doing is helping you answer questions like:

Who will own your business in the future?
Who will run it?
How will the transition happen?
What happens if something unexpected takes you out of the picture?
And most importantly: How do we protect the business, the people in it, and the wealth it creates?

The 3 Phases of Succession Planning

Succession planning isn’t a one-time event. It’s a process. Good lawyers guide you through each phase with clarity and foresight.

Phase 1: Vision, Values, and Goals

We start with deep questions: Is the goal to pass the business to children, key employees, or a buyer? Is it about preserving legacy or maximizing profit? Does the family want to stay involved or simply benefit financially?

These conversations are personal and form the foundation of the plan.

Phase 2: Structuring the Transition

Here’s where the legal framework is built:

Buy-sell agreements between co-owners or heirs
Trusts that hold business interests for the next generation
Entity restructuring to simplify transitions
Gifting strategies to reduce estate tax exposure
Corporate bylaws that clarify roles

The structure is tailored to fit the business, the owner, and the long-term vision.

Phase 3: Implementation and Ongoing Support

A good plan needs action. That means:

Communicating the plan to family and stakeholders
Updating corporate records
Aligning insurance policies
Training future leaders
Revisiting the plan as laws or circumstances change

Succession is fluid. The lawyer stays with you long term.

A Real Story: Saving the Family Business

“Steve,” a client in Northern California, owned a manufacturing company with 60 employees and three children. Two worked in the business; one did not. He had no plan.

We built one:

Ownership transferred into a trust
Voting control given to the two children in the business
Equal financial benefits provided to the third child
Tax-efficient buyout provisions included

The result: no confusion, no court, and a thriving business.

Common Legal Tools in Succession Planning

Buy-Sell Agreements – Define what happens if an owner dies, retires, divorces, or declares bankruptcy.
Trusts – Transfer ownership outside probate, reduce estate taxes, and protect assets.
Life Insurance – Fund buyouts, equalize inheritances, and cover estate taxes.
Entity Restructuring – Converting business forms or splitting operations from real estate holdings to simplify succession.

Why Families Without a Plan End Up in Court

Without a succession plan, businesses face:

Sibling fights over control
Tax bills that force a sale
Creditors targeting the business
Confusion among employees, vendors, and clients

It’s not just about documents. It’s about foresight, leadership, and love.

When Should You Start?

Start earlier than you think. Ideally, succession conversations should begin at least 10 years before stepping back. But even five years or less can still make a difference.

Succession planning is not a luxury. It’s a responsibility.

What Makes a Great Business Succession Lawyer?

Look for:

Experience with your type of business
Willingness to work with CPAs and advisors
Understanding of family dynamics
Clear communication
Long-term commitment

Leadership Development: The Often-Missed Piece

Succession isn’t just about transferring ownership. It’s about preparing leaders. A lawyer helps identify who can lead, who needs training, and how accountability will be built.

When leadership development is part of the plan, the business thrives beyond the founder’s exit.

The Best Plans Are the Ones You Make

A business succession planning lawyer asks the hard questions, uncovers blind spots, and builds bridges between generations. The right lawyer ensures your business and your legacy live on with purpose and peace.

If you’ve been putting this off, now is the time. Because the best legacy isn’t just the business you built. It’s the family you protected and the peace you left behind.

Ready to start your succession plan? Contact Hackard Law today to protect your business, your family, and your legacy.