Establishing a small business “from scratch” involves a multitude of decisions - choosing the right entity type, raising capital, obtaining insurance, compliance, marketing, location, online presence, accounting, hiring a team, going it alone, etc. Yet, two critical areas— estate and succession planning— are often overlooked. According to the Small Business Institute, more than 70% of family and closely held businesses lack viable succession plans, and a similar percentage fail to survive the transition from the original owner to the next generation. This oversight can jeopardize the continuity and legacy of businesses that owners hope will endure for generations. Additionally, when businesses close without succession plans, people lose their jobs and families and communities suffer.
Estate and succession planning are essential because life happens. People will retire, people will die, there may be a divorce, a bankruptcy, or even a deportation. These “life events” can dramatically impact a business. These changes affect not only ownership but also relationships with lenders, landlords, franchisors, employees, customers, suppliers, community and family members. Without proper planning, businesses risk paying excessive taxes, encountering disputes over ownership, breaching agreements, or even losing control through receivership.
To read the full article, please click here (December 2025 edition).
"The Importance of Estate and Succession Planning for Family Owned, Emerging, and Franchised Businesses," by Charles S. Marion, Eric Díaz (LareDiaz), Devin S. Fox (Stevens & Lee), and Daniel R. Levine (Cozen O’Connor) was published in the December 2025 of the Probate and Trust Law Section Newsletter, published by the Section on Probate and Trust Law of the Philadelphia Bar Association.
This article was written based on a November 2025 Philadelphia Bar Association webinar. Learn more here.
