Table of Contents
Protect what you’ve built. Plan your business legacy with clarity and confidence.
What is business succession planning? It’s the process of preparing for the future ownership and leadership of your company. Whether you are planning to retire, step back from operations, or prepare for the unexpected, a well-designed plan protects your legacy, preserves business value, and provides clarity for your family and team.
At Family Estate Planning Law Group, our business succession planning attorneys help small business owners across Massachusetts and Southern New Hampshire navigate this critical process with confidence. We take a relationship-based approach and coordinate your business plan with your estate, tax, and financial goals so everything works together.
Why is Succession Planning Important for Small Businesses?
Most business owners spend years building a successful company but often delay thinking about what happens when they are no longer in charge. Without a clear succession plan, your business may lose value, create family conflict, or become vulnerable to tax and legal challenges.
Common triggering events include:
- Retirement
- Disability or illness
- Death
- Divorce or partnership disputes
A strong business succession plan addresses:
- Who will manage and own the business
- How ownership and leadership will transfer
- What happens to children not involved in the business
- How to avoid probate or court delays
- How to reduce estate and income tax exposure
Key Components of a Business Succession Plan
Our business succession planning attorneys in Massachusetts help you design a plan that reflects your business, your family, and your long-term goals. Some of the tools we often use include:
Buy-Sell Agreements
A buy-sell agreement outlines what happens if you retire, pass away, or become disabled. These agreements ensure a smooth transition and can prevent disputes. Types of buy-sell agreements include:
- Entity purchase agreements
- Cross-purchase agreements
- Wait-and-see agreements
- One-way agreements (used for single-owner businesses)
We ensure your agreement works in real life and is integrated with your estate plan so probate court is not required to complete the transfer.
Business Valuation and Tax Planning
Understanding the value of your business is key to protecting it. We work with your financial and tax advisors to ensure:
- Your estate has the liquidity needed to pay taxes
- Your plan accounts for Massachusetts estate tax if needed
- Your family will not be forced to sell quickly or at a discount
Ownership Structure and Entity Review
Choosing the right entity structure can help with tax planning, liability protection, and transition planning. We coordinate with your team to make sure your entity aligns with your succession goals.
Life Insurance for Liquidity
Life insurance can be used to create liquidity at the time it is needed most. While we do not sell insurance, we often recommend it as part of a comprehensive plan. We will work with your insurance advisor to make sure it is properly owned and integrated with your business and estate plans.
Our Approach to Business Succession Planning
At FEPLG, we do not believe in one-and-done planning. Our Generations Program gives you a long-term partner to support you through every life and business transition.
Our Process:
- Listen first
We learn what matters most to you and who you want to protect. - Build a coordinated plan
We align your business, estate, and financial plans into a single, coordinated strategy. - Align your assets
We verify your business interests are properly owned and aligned with your estate plan. - Collaborate with your team
We work closely with your CPA, financial advisor, and insurance professionals. - Monitor and update over time
Life, law, and business values change. We review your plan regularly so it works when needed.
Local Considerations for Massachusetts Business Owners
Massachusetts has its own estate tax system, which can apply at lower thresholds than the federal tax. We help you:
- Plan for liquidity so taxes do not force a rushed sale
- Avoid probate with properly titled business interests
- Minimize risk and confusion for surviving family members
Why Business Transitions Often Fail
Business transitions often fail when:
- There is no clear successor
- Plans are outdated or not funded
- Family members are left to guess at your wishes
- There is not enough cash to cover taxes or buyouts
We help you avoid these issues by creating a plan that is clear, flexible, and regularly reviewed.
What Happens When There is No Succession Plan?
Let’s look at what can happen if you do not plan for your business.
Imagine the owner of a successful construction company had a buy-sell agreement in place, but it had not been reviewed or updated in over ten years. The person named to take over was no longer involved in the business, and the valuation was outdated.
If no changes were made, this situation could easily lead to confusion, legal delays, or even a forced sale of the business. Family members might disagree about the next steps, key employees could leave, and the business’ value could drop overnight.
Now imagine instead that the agreement had been reviewed regularly, the right successor named, and proper funding put in place. In that case, the transition could be smooth, the business could stay in the family or pass to the right person, and the owner’s legacy could continue without disruption.
Planning ahead makes all the difference. What seems like a simple document today could be the key to protecting everything you’ve built tomorrow.
Business Succession Planning Lawyer in Massachusetts: FAQs
What is involved in business succession planning?
Succession planning includes naming successors, creating agreements, funding the transition, and aligning everything with your estate plan.
When should I start planning?
Start now, even if retirement is years away. Unexpected events can happen at any time, and early planning provides protection.
How much does a plan cost?
Costs vary by complexity. Our business succession planning law firm offers flat fees and ongoing support through our Generations Program.
Does every family business need a succession plan?
Yes. Even if you think the transition will be simple, a written and reviewed plan helps avoid family conflict and loss of value.
What tax strategies help reduce estate tax?
We may use installment sales, grantor trusts, or family entities to reduce taxes and preserve value. Your strategy will be customized.
