Succession planning: Future-proofing your business and legacy
Words by Annie Prosser
In Taranaki, where many businesses and farms are family-owned and built over generations, succession planning is a practical and necessary step to protect what you’ve worked hard to build. Whether you’re growing a commercial enterprise, managing a trust or starting to think about long term options for your business or estate, a well-considered succession plan provides clarity, reduces risk and ensures a smooth transition.
At Govett Quilliam, we work with clients across Taranaki and throughout New Zealand to develop tailored succession plans that align with both personal values and commercial realities. Below we outline what succession planning involves and why it’s worth getting right.
What is succession planning?
Succession planning is the process of preparing for the future transfer of decision-making, ownership or key responsibilities. It applies across a range of legal structures from companies, partnerships and joint ventures to trusts and personal estates. A well-considered plan helps protect continuity, minimise disruption and preserve the value you’ve created.
It often involves both:
- Commercial succession: Transitioning ownership or leadership in a business or professional practice
- Personal succession: Ensuring your assets, trusts and wishes are passed on efficiently and in line with your intentions
Commercial succession
Whether you’re a business owner, director or trustee, commercial succession planning should be proactive and strategic. Key steps typically include:
1. Identifying successors or exit options
Succession may involve developing internal leadership, facilitating a management buy-out, transferring shares to family or selling to a third party. Each option carries distinct legal, tax and commercial implications. We work closely with accountants and other advisors to ensure the chosen path is strategically aligned and professionally robust.
2. Shareholder agreements or buy-sell mechanisms
Clear agreements between business owners can avoid costly disputes if someone exits due to retirement, death or disagreement. Mechanisms for valuation, funding buyouts and transfer restrictions should be regularly reviewed.
3. Governance structures
Well-documented governance (including constitutions, trust deeds, and board protocols) helps ensure decisions can still be made in the absence of key people. We often work with clients to review and update these frameworks.
4. Business continuity and risk management
Succession planning should dovetail with insurance policies, key person cover and disaster recovery plans. Ensuring your legal structure supports long-term continuity is essential.
Personal succession
Succession planning is just as critical on the personal side. Particularly for clients with family trusts, blended families or philanthropic goals. It typically includes:
1. Wills, Enduring Powers of Attorney, Powers of Attorney and Deeds of Delegation
Foundational documents like Wills and EPAs should be kept current and aligned with your overall asset structure.
2. Trust and estate planning
For those with a family trust or investment vehicles, we help assess:
- Whether the current trust structure still meets your needs;
- How distributions or gifting should be managed;
- Trustee succession and decision-making protocols.
3. Family communication
We often advise and assist with facilitating conversations with family members or beneficiaries. Particularly where expectations may differ or the plan is complex. A well-communicated plan reduces the risk of conflict down the line.
Why act now?
Succession planning is too important to leave until a health event, disagreement or sudden offer forces your hand. Having a clear, living plan:
- Protects your business or estate from unnecessary legal risk;
- Offers certainty to family, stakeholders or employees;
- Reflects your values and vision for the future.
How GQ can help
With one of the largest specialist legal teams in Taranaki, we offer deeply rooted local expertise and continuity across generations. Our dedicated team works alongside your accountant, financial adviser and family to develop and implement bespoke succession strategies. We provide:
- Trust and estate planning advice
- Business and shareholder succession advice
- Family arrangements and philanthropic structures
- Legal reviews of governance and documentation
- Dispute prevention and mediation strategies
We meet you where you’re at, whether that’s starting from scratch or refining an existing plan, we’ll help you take the next step with confidence.
Start the conversation
Succession planning is not just about what happens when you’re gone, it’s about what happens while you’re here. If you’d like to explore options for your business, family or trust, get in touch with our Commercial team.
