The HBO series, Succession is a comedy drama that follows a billionaire with declining health and his four adult children as they compete for control of the family business. But while the themes of sibling rivalry, aging parents, generational trauma, and inheritance disputes are common in real life, the show doesn’t always get trusts and estate law right. In fact, there are a number of misconceptions the series can create about what actually happens when it comes to business succession planning in Michigan.
The following are several examples of what Succession gets wrong about inheriting and transitioning a family business in Michigan:
1. A “Handshake Deal” is Not Enough to Transfer Ownership
Much of the conflict in the Roy family stems from different verbal promises made to each adult child. However, in the real world, a business succession plan is a series of legal documents that have been drafted long in advance. Unlike in the show, business succession planning in Michigan is not simply based on private conversation or a handshake alone. If a CEO wishes to change course, formal documents must be signed. Ownership and control of a business can depend upon trusts, operating agreements, buy-sell agreements, and other estate planning documents.
2. Children Do Not Automatically Become Co-Owners of a Family Business if a Parent Becomes Ill
Succession highlights one of the most common misconceptions about family businesses: that an adult child automatically gains control of a parent’s company in the event of incapacity. In reality, an adult child does not become a co-owner or gain management control because a parent becomes ill. Rather than be determined by family relationships alone, ownership and control of a business are governed by legally binding documents, such as corporate agreements, estate plans, and comprehensive business succession plans.
3. A Parent Cannot Simply Change a Succession Plan at Any Moment
In Succession, the CEO, Logan Roy, changes his business succession plan on a whim. Although a parent who is a business owner can change their mind about which child will inherit or control the company at any time, this cannot be done casually. There are certain procedures that must be followed, depending on the governing documents. The applicable documents must also be compliant with the law.
4. A Court Can Become Involved When There are Allegations of Incapacity
The series also portrays how a business owner’s ailing health or incapacity can create uncertainty about the future of the company, and who will make decisions on the owner’s behalf. While the characters in the show question whether Logan Roy is still capable of leading the business, the disputes play out through family battles over company control, rather than a legal process.
In Michigan, allegations of incapacity may lead to court involvement when business operations are at issue. A judge (not family members alone) would decide, based on the evidence, whether an individual is legally incapacitated and a guardianship or conservatorship is needed. The judge would also determine the extent of the conservator’s authority, and what decisions they would be permitted to make on the business owner’s behalf.
5. The Tax Consequences of Passing Down a Business Can Be Significant
Although the show focuses on who has the most leverage in the family, it’s important to understand that passing down a family business requires careful tax planning and a solid strategy. If there is no tax strategy in place, or it is structured incorrectly, taxes can create liquidity issues later or consume the company, depending on its value. Although Michigan has no state-level transfer taxes, the federal government taxes estates over a certain amount. In 2026, the lifetime federal exemption is $15 million for individuals and $30 million for married couples. Estates exceeding the applicable exemption may be subject to a tax rate of up to 40%.
6. Control of a Company Doesn’t Necessarily Mean Ownership
Throughout the series, the Logan family fights over control of the company. However, it’s essential to be aware that control of a business doesn’t always mean ownership. A person can have authority to make day-to-day decisions but not have an ownership interest. Under Michigan law, the distinction between control and ownership ultimately depends on corporate documents, business succession planning, and any other applicable legal documents.
7. Family Business Succession Planning Requires More Than Choosing a Successor
Succession often makes it seem as though business succession is simply about choosing the next person who will control the company’s operations. But a successful transition isn’t only about family dynamics or choosing the oldest child as successor. It requires diligent planning around ownership interests, leadership roles, tax consequences, the long-term stability of the company, and the qualifications of any potential successor. Without proper business succession planning and well-drafted documents in place that govern how ownership should be transferred, how the business will be managed, and who will have decision-making authority, conflicts can arise among family members that threaten the stability and longevity of the company.
Contact an Experienced Michigan Estate Planning Attorney
If you own a family business, it’s essential to have a plan in place that will ensure your legacy is preserved for future generations and your wishes are carried out. The attorneys at Barron, Rosenberg, Mayoras & Mayoras are committed to helping clients with business succession planning matters so they have the peace of mind they need that their company will be protected in the event of incapacity or when they pass. Schedule a consultation today by calling (248) 641-7070 in Michigan or (941) 222-2199 in Florida to learn how we can assist you. You can also use our simple online contact form.