Succession planning is one of those topics that often gets kicked down the road – until suddenly, it can’t be. Whether it’s the retirement of a founding family member, an unexpected illness, or a generational shift in business priorities, the absence of a clear succession plan can destabilise even the most successful family enterprises.
With the growing number of high-net-worth individuals, succession planning has become even more critical to protect family wealth, maintain continuity, and ensure smooth transitions between generations.
Through my work recruiting for family offices, I often see teams grappling with these pivotal moments – when it becomes clear that a transition is on the horizon, but the roadmap to get there hasn’t been drawn. It’s a common scenario, and the truth is, even the most sophisticated families sometimes struggle with the complexities of passing the torch.
Research by Azets suggests that fewer than 1 in 10 UK businesses have succession planning fully integrated into their strategy. That figure doesn’t surprise me. Succession isn’t just a legal or financial exercise – it’s deeply personal, tied to legacy, emotion and family dynamics. That’s exactly where a family office can make all the difference.
In this article, I’ll share some of the most pressing succession planning challenges that I’ve seen family offices face and how, with the right structure and support, they can be overcome.
1. Identifying and assessing the right successor
One of the first questions people often ask is, “How do we know who the right successor is?” It sounds like a simple enough consideration, but it’s one of the most emotionally charged and structurally complex aspects of succession planning.
In many cases, there’s an unspoken assumption that a family member will step into the leadership role – sometimes by default, simply because of their place in the generational line. However, succession based on birth order or tradition alone rarely serves the best interests of the business or the family’s long-term goals.
A common pitfall I see is the absence of an objective, structured process for identifying and evaluating successor candidates. Families either avoid the topic altogether or they focus on one individual without considering a wider pipeline of talent – internal or external. This creates what we call a “succession gap” where no one is fully prepared to take the reins, and there’s no contingency plan in place.
How can a family office help?
This is precisely where a family office can bring real clarity and rigour to the process. When succession planning is managed through the family office, it becomes less personal and more strategic. Independent advisors can be brought in to conduct psychometric testing, leadership assessments and cultural fit evaluations. These insights help families make decisions based not on emotion but on evidence.
In my own work supporting family offices with key hires, I’ve seen how mapping out role competencies and benchmarking candidates can make the selection process more objective. Whether the successor ends up being a family member or an external hire, what matters most is that they’re chosen for the right reasons and that they’re set up to succeed.
By formalising the selection process, family offices can reduce bias, strengthen future leadership and avoid the risk of appointing someone who may not be ready or willing to take on the responsibility. And that, ultimately, safeguards both the family’s legacy and the value of the business.
Learn more about what family offices do and when you might need one here.
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2. Managing family dynamics and conflict
Succession planning isn’t just about who takes over; it’s also about how the family feels about it. And in many of the conversations I’ve had with family offices, this is where the real tension lies.
Family dynamics can be incredibly complex, especially when you’re dealing with multi-generational wealth and legacy. Sibling rivalry, differing visions for the future, and unresolved historical issues can all come bubbling to the surface when succession is on the table. One client once said to me, “It’s not the plan that’s the problem. It’s getting everyone to agree on it.” I knew exactly what she meant.
It’s not uncommon for family members to avoid succession discussions altogether for fear of stirring up conflict. But silence only makes things harder later on. When there’s no transparency, trust can quickly erode, especially if decisions appear to be made behind closed doors or favour one individual over others. This can have a lasting impact not just on relationships but on the performance and continuity of the business itself.
It can even be argued that emotional intelligence is the key to intergenerational succession.
How can a family office help?
A family office can act as a facilitator and a neutral, structured environment for these discussions to take place. A well-governed family office introduces formality without being overly corporate. It can implement governance structures such as family councils, charters and advisory boards that give each generation a voice while keeping decision-making constructive and forward-looking.
Communication strategies can help, including regular family meetings, clear documentation of the succession process, and agreed-upon principles for resolving disagreements. In some cases, it might be worth bringing in independent mediators to support particularly sensitive transitions – a move that’s far more effective (and far less dramatic) than waiting for conflict to escalate.
Most importantly, involving the family office in these conversations helps shift the focus away from individual personalities and back onto shared goals – legacy, values, and the preservation of family wealth. That shared purpose becomes the anchor point when emotions run high.
3. Leadership gaps and successor readiness
Identifying a potential successor is only the first step. Preparing them to lead is an entirely different challenge. In my experience, this is where many families underestimate what’s truly involved in handing over the reins.
I often see a well-meaning assumption that the next generation will simply “step up when the time comes.” But leadership doesn’t happen overnight, and the gaps can become painfully obvious if there’s been little opportunity for the next generation to build the necessary skills, confidence or relationships.
Sometimes, the successor doesn’t feel ready. Other times, they aren’t fully trusted by the current leadership. And occasionally, they don’t even want the role – something that only becomes clear once it’s too late to pivot. These gaps can lead to internal uncertainty, staff turnover, and even value loss if clients or investors lose confidence during the transition.
How can a family office help?
This is where the family office can be instrumental in creating a structured, long-term plan to prepare successors for leadership. Family offices can design bespoke development pathways that align with both the individual’s ambitions and the business’s needs, whether that means additional education, external experience or gradual exposure to key responsibilities.
Family offices are also well-placed to introduce next-generation engagement programmes – opportunities for emerging leaders to attend board meetings, shadow senior roles or work with mentors inside and outside the organisation. In some cases, we’ve supported families in giving successors formal roles within the family office first, allowing them to build trust, gain confidence and develop their leadership style in a lower-risk environment.
These initiatives also give current leaders a chance to assess readiness more objectively and offer guidance or course-correction before a full transition takes place.
Ultimately, readiness is not just about qualifications or experience. It’s about trust, clarity, and timing. And when it’s approached with intention, supported by the structure of a well-run family office, it becomes far more than a handover. It becomes a foundation for long-term continuity.
4. Business continuity and governance weaknesses
One of the most overlooked risks in succession planning is the absence of a solid governance framework. I’ve seen families with thriving businesses and ambitious next-generation leaders but no clear decision-making structure to carry them through a transition. And when there’s no structure, things can unravel quickly.
A lack of governance leads to blurred roles, clashing opinions and an overreliance on one or two key individuals – often the founder or current leader. If something unexpected happens and there’s no plan in place, families are left scrambling, trying to fill strategic gaps in a moment of crisis. That’s not just disruptive, it can be incredibly costly in terms of business continuity, morale and even shareholder value.
It’s important to ask yourself this: “If your CEO stepped away tomorrow, what would actually happen next?” If there’s hesitation or conflicting answers, that’s usually a sign that more structure is needed.
How can a family office help?
This is where a family office can provide real continuity. By centralising governance and embedding it into the day-to-day operations of the family enterprise, the office creates stability regardless of who’s currently in charge. It becomes the throughline between generations.
That might look like formalising a family council to guide long-term strategy or implementing a succession committee to manage leadership transitions. It might also include documented policies on voting rights, decision-making thresholds, and communication protocols.
One of the most valuable contributions a family office can make is ensuring the succession plan doesn’t live in someone’s head. It’s written down, reviewed regularly and accessible when it matters most.
Effective governance doesn’t mean adding layers of red tape. Quite the opposite. It provides clarity, reduces emotional decision-making and ensures the family’s values and business interests remain aligned across generations. And that, in my view, is what makes a family office such a powerful tool for long-term resilience.
5. Tax, valuation and wealth transfer complexities
Even when the emotional and operational aspects of succession are under control, there’s still the financial side, and it can be just as complex. In the UK, wealth transfer brings with it a unique set of tax, legal and valuation challenges that families must navigate carefully.
One of the biggest concerns I hear from families is around inheritance tax. Without proper planning, significant value can be lost to HMRC, sometimes unnecessarily. I’ve seen situations where a last-minute transfer triggered an unexpected tax bill simply because the right structures weren’t in place early enough.
Business valuation is another area where tensions can arise, particularly when not all family members are actively involved in the business. Assigning a fair value to a privately held company is never straightforward, and disagreements over what the business is worth (and to whom) can quickly derail the succession process.
How can a family office help?
A well-established family office can engage trusted advisors – legal, tax and financial – to guide the process long before a transition occurs. These professionals work alongside the family, ensuring everything from inheritance tax planning to Business Property Relief eligibility is addressed in a proactive, tax-efficient way.
I’ve worked with families where the family office helped structure family investment companies, trusts or shareholder agreements that allowed for a gradual transfer of ownership while maintaining control and preserving wealth. These decisions can be deeply personal, but when managed through a centralised office, they become part of a broader succession strategy – not just a last-minute fix.
In short, effective succession planning is also about ensuring that the transition protects and strengthens the family’s financial position. And for that, you need a family office that’s equipped to think long-term, coordinate the right advisors and act in the family’s best interests across generations.
About the author:
Auria Heanley is co-founder of Oriel Partners, a boutique PA and administrative recruitment consultancy based in Central London with a specialism in family office recruitment. She is extremely passionate about providing the highest quality of service to both clients and candidates for both permanent and temporary recruitment. Oriel Partners’ clients range from HNW families and global multinationals to small boutique firms, all requiring the same personal service and high-calibre support.
