Succession planning is a critical component of safeguarding both personal and business assets. It provides clarity and continuity for family members, business partners, and other beneficiaries. However, circumstances change—families evolve, businesses grow or restructure, and personal preferences shift over time. Understandably, many clients ask: “Can I change my succession plan once it’s been made?” The answer is yes, and in many cases, it is not only possible but advisable.
At Blackstone Solicitors, we assist clients across England and Wales in creating, updating, and executing comprehensive succession plans. This article explores when and how a succession plan can be changed, why regular reviews are important, and the legal mechanisms to ensure that any amendments remain valid and enforceable.
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For a free initial discussion with a member of our New Enquiries Team, get in touch with us today. We are experienced in dealing with all the legal aspects of Succession Planning, and once instructed, we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you are on the best possible footing from the start and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
Understanding Succession Planning
A succession plan is a framework that outlines how your assets, business interests, and responsibilities will be transferred or managed in the event of death, retirement, or incapacity. For business owners, it also sets out leadership and ownership transitions. For individuals, it may involve a will, trust arrangements, powers of attorney, and financial planning.
Succession plans typically include:
- Wills and codicils
- Trust structures
- Business shareholder or partnership agreements
- Lasting powers of attorney (LPA)
- Tax strategies, including inheritance tax (IHT) planning
- Letters of wishes or memoranda of guidance
These documents are tailored to your current circumstances. However, as those circumstances evolve, it is essential to ensure your succession plan remains aligned with your wishes and compliant with legal and regulatory requirements.
Why You Might Need to Change Your Succession Plan
There are numerous reasons why someone may need or wish to change their succession plan. These include:
- Change in Family Circumstances
- Marriage, divorce, civil partnership, or separation
- Birth or adoption of children or grandchildren
- Death of a family member or beneficiary
- Change in relationship dynamics
For example, a will made before marriage may be rendered invalid unless it contains a specific clause stating otherwise. Divorce may also affect previous inheritance arrangements or beneficiary designations.
- Business Developments
- Sale, merger, or acquisition of a business
- Retirement or exit from the business
- Appointment or departure of key partners or directors
- Change in company structure (e.g., moving from sole trader to limited company)
These changes can affect shareholdings, responsibilities, and the identity of your chosen successor, making it necessary to amend shareholder agreements or trust deeds.
- Changes in Wealth or Assets
- Purchasing or selling significant assets, such as property or land
- Substantial change in financial position (growth or decline)
- Investment in new ventures
- Receiving an inheritance
An updated succession plan ensures that your estate is distributed fairly and tax-efficiently, taking new assets and liabilities into account.
- Changes in Law or Tax Regulations
Succession and inheritance planning is heavily influenced by tax legislation and legal precedent. Amendments to inheritance tax rules, business reliefs, or trust regulations may necessitate changes to your plan to retain its effectiveness.
- Change in Personal Intentions or Beliefs
You may simply change your mind about who you wish to benefit from your estate, how responsibilities are distributed, or the method of transfer. As personal priorities shift, your plan should evolve accordingly.
How to Change a Succession Plan
The ability to modify a succession plan depends on the legal nature of the documents involved. Below are the most common methods of making amendments:
- Updating a Will
You can change your will at any time while you have mental capacity. This can be done in one of two ways:
- Codicil: A formal, signed amendment to your existing will. Suitable for minor changes, such as adding or removing a beneficiary.
- New Will: If there are significant changes, it is usually better to revoke the old will and create a new one. This avoids confusion and the risk of contradictions.
It’s essential that changes meet all legal formalities, including being in writing and signed in the presence of two witnesses.
- Varying a Trust
Many succession plans involve trust arrangements. Depending on the type of trust and the terms of the trust deed, it may be possible to vary the trust. This can be done through:
- A deed of variation: With agreement from all beneficiaries (if adults and with capacity), the terms can be modified.
- Use of discretionary trusts: These offer flexibility in managing distributions over time, reducing the need for frequent changes.
Legal advice is crucial when considering trust amendments to ensure that changes are compliant with both the trust instrument and applicable tax law.
- Changing Business Succession Documents
Shareholder agreements, partnership agreements, and articles of association can all be updated, but usually require consent from other stakeholders. These documents should clearly set out how succession is handled, including buy-sell provisions, valuation methods, and voting rights.
Updating such agreements may also involve revisiting:
- Director service contracts
- Share option schemes
- Key person insurance policies
- Revoking or Changing a Lasting Power of Attorney (LPA)
If you have granted a lasting power of attorney (LPA) for health and welfare or property and financial affairs, you can revoke it at any time as long as you retain mental capacity.
To change an LPA:
- A new LPA must be created and registered with the Office of the Public Guardian (OPG).
- The old LPA should be formally revoked in writing and notified to the attorneys.
It is good practice to regularly review LPAs to ensure that your appointed attorneys remain suitable and willing to act.
Legal Considerations and Risks
While making changes to a succession plan is legally possible, it must be done with care. Poorly drafted amendments, conflicting clauses, or informal instructions can lead to:
- Disputes among heirs or business partners
- Loss of tax relief or exemption eligibility
- Legal challenges or will contests
- Delay in probate or business transition
- Unintended beneficiaries
For example, a letter of wishes expressing new intentions, if not supported by legal documents, may not be enforceable. Similarly, failure to notify relevant parties (e.g., executors or trustees) could create confusion during administration.
That’s why legal guidance is essential to ensure all changes are implemented correctly and consistently across your documents.
How Often Should I Review My Succession Plan?
We recommend reviewing your succession plan at least every three to five years—or more frequently if major life, legal, or financial events occur. These reviews provide an opportunity to:
- Assess whether your current arrangements still meet your goals
- Take advantage of new tax planning opportunities
- Ensure compliance with current laws and best practices
- Address any changes in family dynamics or business structure
At Blackstone Solicitors, we offer succession planning reviews to ensure that our clients’ documents remain effective and legally sound.
Conclusion
Succession planning is not a one-off exercise. It is an ongoing process that should evolve as your life, assets, and priorities change. Fortunately, the law allows flexibility to make changes—but only if done correctly and with proper legal formalities.
Whether you need to amend a will, revise a trust, update business succession documents or revoke a lasting power of attorney, professional legal advice is vital to protect your intentions and avoid costly complications.
How we can help
We have a proven track-record of advising upon all aspects of succession planning. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting. You can read more about the range of sports law services we offer by clicking here: https://blackstonesolicitorsltd.co.uk/succession-planning/
How to Contact Our Succession Planning Solicitors
It is important for you to be well informed about the issues and possible implications of succession planning. However, expert legal support is crucial in terms of ensuring a positive outcome to your situation.
To speak to our Succession Planning solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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