For many mothers who launch companies, the venture is as much an inheritance vehicle as a livelihood. Yet the transition to the next generation often remains unplanned, according to advisors who specialize in family businesses. A recent SoFi survey of 1,000 business-owning mothers found that two-thirds started their companies with the goal of building generational wealth, and 48% expect their children to eventually take over. However, a separate study by Edward Jones and NEXT360 Partners found that only 37% of business owners have a financial advisor helping them prepare for succession.
Advisors say the gap is costly. Without a plan, a founder's death or disability can force a fire sale, trigger estate taxes, or leave heirs unprepared to lead. The solution, they argue, is to treat succession as a strategic priority from day one, not an afterthought.
Why succession planning and profitability go hand in hand
Kristin Larson, founder and wealth advisor at NewSpring Wealth Partners, emphasizes that a business must be able to operate without its founder. She advises clients to identify tasks only they can perform and build a team and systems to handle the rest. "Profitability and succession are more closely linked than many owners realize," Larson said. A business that depends on the owner's daily involvement is harder to sell or transfer, and it often commands a lower valuation.
Chloe Wohlforth, a partner at Angeles Wealth Management, echoes that view. "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," she said. "Those steps strengthen the business today and make it easier to transfer, whether the successor is a child, an employee or an outside buyer."
Camille Svitek, senior wealth advisor at Evermay Wealth Management, suggests keeping the ownership timeline separate from daily operations. That allows families to work on governance, valuation, and leadership development years before any transfer. Tax strategies, she notes, can also generate savings while positioning the eventual handoff.
What is the first step when a client wants her kids to take over?
All three advisors agree on the starting point: don't assume the answer. Larson said parents often conflate their hopes for a child with the child's own aspirations. "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," she said. "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."
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 many never have. "We also separate ownership from management, because inheriting a stake in the business doesn't mean a child should run it," she said. That distinction shapes the broader estate plan, including how ownership transfers, when gifting begins, and how to treat siblings fairly when only some join the business.
Timing of 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," she said. "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."
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 work elsewhere first, so they can build skills and confidence before deciding whether ownership suits them.
Wohlforth describes the approach as "exposure without expectation." She notes that 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.
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 path. For advisors, the goal is to raise thoughtful stewards of wealth who feel free to decide whether running the business is right for them. As early cash-flow planning can help, so can open family discussions about estate plans. And for those considering a sale, pandemic fatigue and due diligence readiness are key factors.
