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This is a very difficult situation, and you should be very careful if you want to get out of it untouched. I seriously think that it would be good to have a constructive talk at first, to make sure what each side wants. Or, if you think there may be some issues with the transition, maybe you should consult with your lawyer and check her contract to see what does it state in these cases. Employee transition is a very gentle topic, and if the news are bad the consequences can be also, so be very careful.