Keep it in the family: How a financial planner could help you prepare a fit-for-purpose succession plan

14 May 2026

£7 trillion is expected to pass between generations over the next 30 years. And this figure only accounts for wealth transferring within the UK.

Meanwhile, Vanguard projects that by 2030 (now just four years away) around $18.3 trillion of global wealth will be transferred.

Many families may only need to consider how to safely transfer their private assets. But for those running a family business, there’s more to think about.

There are more than 5 million family businesses in the UK, but only 34% have a succession plan

According to a report by Family Business, in 2023, there were more than 5 million family-run firms in the UK.

Further research, reported by SME Today, suggests that although two-thirds (66%) of family business owners intend to pass their business on to a family member, only 34% have made formal succession plans.

When it comes to business and family, there’s a lot at stake. Failing to put a clear plan in place for what might happen when key individuals step back from your business could lead to significant disruption.

Here are five ways a financial planner could help you build a strong succession plan for your family business.

1. Help you to avoid conflict

Succession often requires you to address sensitive issues, particularly if expectations differ between generations or siblings. If left unaddressed, lingering tensions could not only damage family relationships but also affect the business itself.

As planners, we often act as a neutral sounding board, supporting open conversations to ensure everyone understands the financial implications of different options, which can help families avoid disputes later.

2. Model different exit routes

There’s no “right” way to pass on a family business. You may decide to sell outright or sell some of your business while retaining a stake. Alternatively, you may wish to step away slowly and plan a phased handover across several years.

This is where cashflow modelling can help. Using detailed projections, your financial planner can show you how different exit strategies could affect your income, lifestyle, and long-term security – as well as the ongoing financial health of the business itself.

For example, if you plan to step back while retaining some shares, we’ll illustrate how dividends might support your retirement. If you’re planning a full exit, we can explore how sale proceeds could be invested to provide a sustainable income or fund a new venture.

Though the Financial Conduct Authority (FCA) doesn’t regulate cashflow planning, seeing the potential financial outcomes in advance could help increase your confidence when making decisions that may affect both you and your successors, reducing uncertainty and giving you peace of mind.

3. Planning for retirement without selling the business

Passing a business on to family often means missing out on the lump sum that you might gain from a sale.

While you may continue to receive income from the business after stepping back, that income will remain tied to its performance. As such, it’s important that the business is structured to support your retirement needs, while also ensuring the new leadership team is able to grow and manage it effectively.

We can help you devise a retirement income strategy using multiple sources – pensions, investments, property, or ongoing business income – to support the lifestyle you want.

Bear in mind that the value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Plus, investments should be considered over the longer term and fit in with your overall attitude to risk and financial circumstances.

4. Preparing for change via tax planning

Since tax plays a pivotal role in succession planning, the sooner you start the more options you’re likely to have.

For example, Business Relief (BR) may be a valuable tool when passing on family businesses, but the rules are complex.

From 6 April 2026, the first £2.5 million of qualifying assets will be exempt from Inheritance Tax (IHT), while the excess will attract 50% relief. In effect, individuals may be liable to pay 20% IHT on assets transferred above £2.5 million.

Where applicable, this £2.5 million cap will be shared across assets qualifying for BR and Agricultural Relief (AR) on a pro-rata basis.

For spouses, any of the £2.5 million unused at death can be transferred to the surviving partner.

Importantly, the option to pay IHT by equal annual instalments over 10 years, interest-free, will continue to be available for both qualifying agricultural and business property.

We’ll work with you to understand all the available options and help ensure you’re making the most of any tax reliefs and allowances.

Please note: the FCA does not regulate estate planning or tax planning.

5. Reviewing Lasting Powers of Attorney, wills, and key legal documents

A Lasting Power of Attorney (LPA) allows someone you trust to make financial and business decisions if you lose mental capacity. Without one, routine decisions may be delayed or blocked, which could disrupt the running of your business.

As well as LPAs, once the business has been transferred, we’ll be on hand to help review all the necessary documents to ensure that wills, shareholder agreements, partnership arrangements, and any trusts are correctly updated to reflect the new reality. Please note that the FCA does not regulate LPAs, trusts, or will-writing.

Get in touch

When it’s time to hand over the reins, we’re here to support you through the process. We’ll help you prepare a sound succession plan or exit strategy that ensures business continuity while aligning with your objectives.

To find out more, please email [email protected] or call 0161 8080200.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.

The Financial Conduct Authority does not regulate tax advice.