Succession planning isn’t just about passing on money or assets — it’s about avoiding chaos, protecting family relationships, and ensuring smooth continuity when someone’s no longer around. Whether it’s personal wealth or a business empire, succession has to be thought through. This blog, based on M2K’s Succession Planning Series #1, covers what succession planning means, what can go wrong without it, what needs to be evaluated while planning, and how real-life cases played out — both good and bad.
What is Succession planning?
Succession planning is the process of passing assets — including property, business ownership, investments, and other wealth — from the legal owner to their intended beneficiaries.
It’s not something that happens by default. And it’s not just for the ultra-rich or large business families. Every person who owns anything of value needs to think about it.
Succession planning becomes especially important to avoid confusion or bitterness among family members later. Without a plan in place, even small estates can lead to disputes and delays — all of which could have been avoided with some early clarity.
It’s also not just a personal or family matter. For those who run a business, planning for who takes over, how control is passed, and how shares are transferred is equally critical.
Issues of unplanned succession
A lot of people never get around to succession planning. And that’s where the problems begin. Here’s what typically happens when someone dies without a clear Will or succession structure in place:
- Family members don’t even know what assets exist. They have no clue where the property papers are, what investments were made, or which accounts were active. That makes it nearly impossible for legal heirs to claim what’s rightfully theirs.
- Legal disputes start to brew. In the absence of a documented plan, everyone has their own assumptions. That leads to disagreements over who gets what — and very often, those disagreements land up in court.
- Litigations drag on for years. Instead of enjoying the inheritance, families spend time, money, and energy on long legal battles. These conflicts slowly erode relationships and drain wealth.
- Wrong hands end up in control. When there’s no formal plan, assets sometimes land with someone who wasn’t meant to handle them. That often leads to poor financial decisions and mismanagement of what was once a hard-earned legacy.
In short: no plan = big mess.
Factors to be evaluated in the process of succession planning
Succession planning isn’t a one-size-fits-all checklist. It depends on a number of personal and legal factors. Here are some key aspects that should be considered while designing a proper plan:
- Nature, value, and location of assets
Are you talking about real estate, cash, shares, gold, or a business stake? Where are these assets located — in India or abroad? Are they moveable or immoveable? All these details shape how they should be passed on. - Residential status of the owner and beneficiaries
If either the owner or heir lives overseas, tax laws and inheritance laws may vary. NRI and foreign beneficiaries often face unique legal and financial challenges. - Family dynamics and capabilities
Does everyone get along? Are some children actively involved in the business and others not? Who is best suited to take on responsibility? These aren’t emotional decisions — they have to be practical. - Existing legal and tax rules
Taxation laws and inheritance rules in India (and other countries where assets may exist) must be considered. What works on paper may turn into a legal headache if the tax angle is ignored.
Succession planning is part financial, part legal, and part family management — and all three need to align.
Elements of a good succession plan
So what does a solid, well-thought-out succession plan actually look like?
Here’s what the best ones usually include:
- Clear communication within the family
No one likes surprises — especially when it comes to inheritance. Being transparent with family members avoids confusion and lets everyone prepare mentally. - Proper documentation
A Will is just the start. Trust deeds, shareholding agreements, nominee updates, and power of attorney — all need to be clear, updated, and legally valid. - Professional involvement
Lawyers, chartered accountants, tax planners, estate advisors — they know how to structure things legally and smartly. A DIY approach is risky. - Flexibility and review
Things change — children get married, assets grow, priorities shift. A good plan isn’t frozen in time. It’s reviewed periodically and amended when needed. - Family business control
Who runs the show? Who owns it? Who’s just benefiting from it? A good plan separates management from ownership where needed and ensures qualified people take charge. - Exit structure
If someone wants to exit the business, there must be a clean process — including how shares will be valued and how liquidity will be provided. - Risk protection
Plans must consider what happens if an heir dies early, becomes medically unfit, or falls into debt. This is where insurance, trusts, and ring-fencing come in. - Defined roles and ownership
The plan should clearly define who gets what — and who is responsible for what. Vague roles create future fights.
Real-life case studies
Reliance Group
Dhirubhai Ambani, one of India’s biggest business icons, didn’t leave a succession plan behind. After his sudden death in 2002, a power struggle broke out between his sons, Mukesh and Anil. The conflict became public and ugly, with both camps locking horns over control. Eventually, their mother had to step in and split the company. Mukesh took over Reliance Industries and IPCL, while Anil got Reliance Energy, Capital, and Infocomm. What could’ve been a smooth handover turned into a full-blown corporate war — all because the founder didn’t plan succession.
Hinduja Group
Founded in 1914, the Hinduja Group was run by four brothers who had earlier agreed that all family assets would be jointly owned. But in 2020, a dispute erupted when one branch of the family — belonging to SP Hinduja — claimed sole ownership of a Swiss bank. Legal battles followed. Even though the bank formed only a small part of the family empire, the case raised questions about ownership, intention, and interpretation of family agreements.
Prestige Group
The Prestige Estates story shows how planning can prevent chaos. The founders structured the family’s stake in the company through a combination of family trusts and a master trust. This setup gave each family branch the flexibility to enjoy their economic benefits, while keeping central ownership aligned. Because roles and distributions were defined clearly, there were no public disputes — just a clean transition of control.
RPG Group
Rama Prasad Goenka got it right. In 2010, he pre-divided the RPG empire between his two sons, Harsh and Sanjiv. Harsh got CEAT, KEC, Zensar, and RPG Life Sciences, while Sanjiv got CESC, Saregama, and other businesses. This split wasn’t forced by conflict — it was planned. And because it was done openly and early, both brothers moved forward without legal disputes or media headlines.
Final note
Succession planning isn’t just about dividing money — it’s about preserving peace, protecting wealth, and preparing for the future.
It’s not optional. It’s not just for large business families. And it’s definitely not something that should be delayed until retirement.
Start now. Even a basic Will can prevent major issues. And if you have a family business, start thinking beyond just shares — think management, responsibilities, future conflicts, and continuity.
