Succession planning for business-owning moms starts on day one

For many mothers who start companies, the business is an inheritance plan from the outset – and financial advisors say succession planning should begin just as early.

Two-thirds of business-owning mothers said building generational wealth for their children was a major reason they launched, and 48% expect their kids to take over the company one day, according to a recent SoFi survey of 1,000 mothers who own businesses. 

For advisors, that turns a client's operating company into an estate asset and a succession question long before any transfer takes place. The planning gap is wide. A study by Edward Jones and NEXT360 Partners found only 37% of business owners had a financial advisor helping them prepare for succession.

A trio of wealth advisors who work with women entrepreneurs say the work begins with a company that can run without its founder. It then requires separating what a mother hopes for from what her children actually want.

Why succession planning and profitability go hand in hand

Kristin Larson, founder and wealth advisor at NewSpring Wealth Partners, reminds clients that their children have only one mother. She urges them to identify the tasks only they can do and build support around everything else, at home and at work. In the business, that means a capable team and systems that let the company operate without the owner signing off on every decision. Larson said profitability and succession are more closely linked than many owners realize.

Chloe Wohlforth, a partner at Angeles Wealth Management, agreed that preparing for a successor should not weaken the business in the meantime.

"At Angeles, we treat succession as part of the strategic plan from the start: building a strong management team, creating repeatable processes and reducing dependence on any one person, including the founder. Those steps strengthen the business today and make it easier to transfer, whether the successor is a child, an employee or an outside buyer," Wohlforth said.

Camille Svitek, senior wealth advisor at Evermay Wealth Management, keeps the ownership timeline on a separate track from daily operations. That lets a family work on governance, valuation and leadership development years before anything changes hands. Tax strategies, she noted, can help position the eventual transfer while producing meaningful savings now.

What is the first step when a client wants her kids to take over?

All three advisors start in the same place: don't assume the answer.

Larson said one of the hardest things for a parent is separating hopes for a child from the child's own goals. A transition has to work for the company and for the heirs.

"We start by understanding each child's interests, strengths, and long-term goals, including whether they want to be involved and what role might fit. Sometimes one child is interested in running the business while the others are not. That can raise questions about leadership, ownership, and how to be fair to children whose involvement may be different. Those discussions can help us begin thinking about ownership, estate planning, and how the business fits within the family's broader wealth," Larson said.

Because many mothers launch businesses when their children are young, Wohlforth builds plans that hold up whether or not a child ever has the interest or aptitude to lead. She also pushes families toward direct conversations about the company, which she said many never have.

"We also separate ownership from management, because inheriting a stake in the business doesn't mean a child should run it. That distinction gives both generations flexibility and carries into the broader estate plan, shaping how ownership transfers, when gifting begins and how to treat siblings fairly when only some join the business," Wohlforth said.

The timing of those gifts carries real tax weight. For 2026, the federal annual gift tax exclusion is $19,000 per recipient. The lifetime estate and gift tax exemption is $15 million per individual, a level the One Big Beautiful Bill Act made permanent, with annual inflation adjustments. 

Svitek starts with the numbers.

"A good first step is getting a clear valuation and financial picture of the business, since that can shape everything from the eventual transfer or buyout structure to how children who aren't involved in the business are treated fairly through other assets. From there, it's important to define what 'taking over' actually means, because ownership and leadership don't necessarily have to transfer on the same timeline. I also think it's helpful to bring the family into the conversation early, rather than making assumptions about what each child may or may not want. Getting those pieces clear upfront gives the family a much better foundation for the decisions that follow," Svitek said.

How advisors prepare the next generation for ownership

The common thread is exposure, not pressure. Larson recommends age-appropriate roles in the business that teach work ethic, responsibility and teamwork. She also encourages older children to take jobs elsewhere so they can build skills and confidence before deciding whether ownership suits them.

Wohlforth describes the approach as exposure without expectation.

"Many business-owning mothers already teach their kids about entrepreneurship, which is a great start. Over time, that can mean joining family financial conversations, working elsewhere first and gradually taking on business decisions. One client's daughter spent several years at another company before joining the family business, bringing outside experience and the confidence that she chose the role rather than inherited it. The goal is to raise thoughtful stewards of wealth who feel free to decide whether running the business is right for them," Wohlforth said.

Svitek suggests summer jobs, seats in board or leadership meetings, and time in different parts of the company. Those let heirs learn what the business involves without locking them into a decision.

"I'm also a big believer in setting checkpoints along the way, with an opportunity to step away if it's not the right fit. Giving the next generation that runway tends to lead to a better outcome for everyone, whether the answer ultimately ends up being yes or no," Svitek said.