Is Succession Planning Different From Estate Planning?

Ravi Solanki • November 3, 2026

Succession planning and estate planning are both important if you are a business owner, but they deal with fundamentally different areas of your life. They complement one another, so it’s important to consider both, rather than focusing on only one.

What is succession planning?

If you own a business, chances are you will have at least thought about your succession plan. You may already have made provisions in relation to key employees within your organisation.

But what about succession planning for you, as the owner? This is crucial when it comes to planning in later life because you won’t be in a position to run your business forever.

As a business owner, it’s essential to consider how the company will run once you step down to retire, as well as how you plan to exit your business. This will form the bedrock of your succession plan.

Succession planning is often discussed in the context of large companies, but it is just as important if you own and run a small business. Who will take over your responsibilities, how you train people to follow in your footsteps and how you step away are all questions that need to be answered.

A succession plan can also cover the future strategic direction of your business, if that is appropriate.

The sooner you start thinking about these elements of owning a business, the easier it is to put sufficient plans and processes in place while you have time to discuss and refine those with the people whose input you value.

What is estate planning?

Where succession planning focuses on the sustainable and smooth running of a business, estate planning is much more personal. It deals with how you want to pass on your personal wealth and possessions.

An estate plan will include not only financial wealth, but also property, investments and sentimental items. Its purpose is to help you pass on all that you have earned in your lifetime in the most tax-efficient way possible.

An estate plan is also not only one document. It is a set of documents designed to minimise the stress for your loved ones when they inherit. That means it typically includes not only your will, but also lasting powers of attorney, a pension nomination form and a letter of wishes.

Estate plans can also include the likes of trusts to help ensure the people you care about most receive a dedicated amount from your estate. Depending on your net worth, you may also have an inheritance tax plan as part of your estate plan.

This can sound overwhelming, but with the support of a professional in estate planning services, you can get all of these documents and provisions in order calmly to suit your wishes.

If you own a business, your estate plan may include provisions for your business. For instance, if you want your family to remain shareholders even after you have gone. However, this does not mean your family needs to be involved in running your business.

Why start estate and succession planning now?

It’s never too early to begin your estate and succession planning. In fact, there are significant financial benefits to starting this process sooner rather than later.

Earlier this year, research by Octopus Investments revealed that getting to grips with estate planning at the age of 50 could see affluent families in the UK pass on £397,000 more than those who start at the age of 70.

To learn more about why starting estate planning early is so important and to find out what is appropriate in your situation, book a Clarity Call with one of our advisors to receive tailored advice and support.

< Older Post

How Likely Are You To Need To Pay Inheritance Tax?

By Ravi Solanki • September 30, 2026

Inheritance tax is an emotive subject. Learn how likely it is that your estate may be eligible to pay IHT and find out how an inheritance tax planner can help.

3 Reasons To Get Support With Your Estate Plan

By Ravi Solanki • September 7, 2026

Discover three of the top reasons to seek professional support with your estate plan and learn how working with an estate planner can improve your situation.

When Should You Start Estate Planning?

By Ravi Solanki • August 28, 2026

Too many people in the UK still shy away from estate planning, as evidenced by research indicating that 56 per cent of adults in the country do not have a will in place. This only falls slightly, to 53 per cent, for those aged 50 to 64, indicating that many people are sticking their heads in the sand when it comes to what will happen to their assets when they pass away. But, of course, a will is only one element of an estate plan. There are many approaches you can use to help protect the wealth you have accumulated throughout your lifetime to pass on to your family and ensure they continue to reap the benefits of what you’ve sown. When should you start estate planning? The reality is that the sooner you start estate planning, the better. This is because an estate plan is not an activity you do once and then ignore. It is a living, breathing plan that can adapt as your life changes. Many people wait until their later years before they start thinking about what will happen to their wealth once they pass away. While it is certainly better to engage with estate planning services in your 60s than not to do so at all, it is even more helpful if you start at a younger age. One of the reasons for starting earlier is that you can make your wishes clear and ensure you have a plan in place before there could be questions over your mental capacity. It is a confronting fact, but the number of people with dementia in the UK is expected to rise to 1.4 million by 2040 , which means if you leave this process too late you may not be in a position to take control of your estate planning yourself. I share this not to scare you, but to highlight a genuine risk that many people overlook. What are the benefits of early estate planning? There are many advantages to starting your estate planning as soon as possible, chief among them that it gives you control over your future. Estate planning is an overwhelmingly empowering process and I see my clients go from feeling nervous at the prospect to feeling both relieved and in more control of their finances once they have created an estate plan with me. Other benefits of estate planning include: Being in a position to adapt your approach to new legislation around taxation. Being able to maximise the money you give tax-free to your family and loved ones. Reducing your inheritance tax bill by making smart financial choices. Maximising the amount you can give to members of your family and loved ones as tax-free gifts can be an important part of an estate plan. Under current rules, when you give someone money, that sum becomes exempt from inheritance tax provided you survive for at least seven years after making the gift. Of course, there are more complex rules surrounding this process than merely surviving seven years, and there are annual limits on how much of your wealth you can give away and in what form. This is why working with an experienced estate planner is so important. I’m here to talk you through your estate planning options at any time, simply book a Clarity Call to get started.

What Does Intestacy Mean And How Does It Affect Inheritance?

By Ravi Solanki • August 13, 2026

Learn about the rules of intestacy in the UK and find out why a will and estate plan are so important if you want control over who inherits from your estate.

Why Do You Need An Estate Plan If You Own A Business?

By Ravi Solanki • August 1, 2026

Discover the foundational elements of a business estate plan and why it’s so important to make provisions for what will happen to your company when you pass.

Worried About IHT Changes On Pensions? Here’s What To Do

By Ravi Solanki • June 30, 2026

Discover three simple steps to take if you are worried about the upcoming changes to inheritance tax on pensions to bring you and your family peace of mind.

Why A Will Is A Cornerstone For Your Estate Plan

By Ravi Solanki • June 18, 2026

Learn why writing a will is so important both for your peace of mind and ensuring your wishes are enacted, and also as part of your broader estate planning.

When Do You Have To Pay Inheritance Tax?

By Ravi Solanki • June 1, 2026

Learn about inheritance tax and how quickly it has to be paid when someone passes away. Discover how planning ahead can give you and your family peace of mind.

What Does Your Estate Plan Need To Cover If You Own A Business?

By Ravi Solanki • May 27, 2026

Discover what areas to focus on when you are creating an estate plan that covers your business to ensure it can provide for your family for many years to come.

Why Use Trusts As Part Of Your Estate Plan?

By Ravi Solanki • April 16, 2026

Find out more about what trusts are and how they work in the context of estate planning to understand if this could be a valuable tool to support your family.