MYTH: “Family Businesses Do Not Need Succession Plans”

“It will all work out – we have always figured it out as a family.” 

Sound familiar? Whether it’s said at a board meeting or over Sunday lunch, this kind of thinking is common—and comforting. But when it comes to succession planning, comfort can be costly. 

In the UK, a significant percentage of family businesses don’t survive to the second generation. Not because of market forces, but because of poor planning. 

Let’s bust the five most common myths that stop family businesses from protecting their legacy. 

Myth 1: “We don’t need a plan—my children already know the business.” 

They might know the business, but do they know how to run it? 

Succession isn’t just about familiarity, it’s about readiness. Leadership transitions require training, mentoring, and sometimes external support. Without a plan, you risk creating a leadership vacuum that can shake staff, clients, and even lenders. 

Myth 2: “We’ll sort it out when I’m ready to retire.” 

Waiting until you’re “ready” often means waiting until it’s too late. 

Unexpected illness, divorce, or market shifts can force your hand. Without a Power of Attorney or shareholders’ agreement, your business could face legal deadlock or forced sales. Succession planning is about future-proofing, not just retirement. 

Myth 3: “It’ll all pass to my children tax-free.” 

Not quite. 

Without the right structure, your estate could face Inheritance Tax (IHT) of up to 40% on anything above the tax-free threshold. Even gifting shares can trigger Capital Gains Tax (CGT) if not timed and documented properly. 

Myth 4: “We’re a close family, there won’t be any conflict.” 

Even the closest families can fall out over unclear roles, ownership, or expectations. 

A well-drafted shareholders’ agreement, clear voting rights, and a defined leadership plan can prevent disputes that damage both relationships and business value. 

Myth 5: “Succession is just about choosing a successor.” 

It’s much more than that. 

True succession planning involves: 

 Leadership development 

• Tax and legal structuring 
• Governance clarity 
• Family facilitation 
• Business continuity planning 

It’s not a one-off conversation, it’s a process. 

What’s at Stake Without a Plan? 

• Loss of Business Property Relief (BPR) if your structure isn’t compliant  
• Reduced business valuation due to uncertainty 
• Family disputes over shares or control 
• Missed opportunities for tax efficiency 

How Wright Vigar Helps 

We’ve developed a proven framework to guide family business owners from uncertainty to clarity: 

• Discovery Meeting – Understand your goals and concerns 
• Diagnostic Review – Assess structure, tax exposure, and family readiness 
• Succession Roadmap – A phased plan covering leadership, ownership, and tax 
• Implementation Support – Work with your legal and financial teams 
• Ongoing Stewardship – Adjust as your family or business evolves 

Let’s Talk—Even If You’re “Not Ready Yet” 

Succession planning isn’t about stepping away. It’s about stepping forward with a clear path for those who follow.