Many people who own businesses would like to pass their companies on to their children. When making a business succession plan, they assume that means all of their children should get an equal share.
You can do this if you’d like, but it certainly isn’t a requirement. You must decide what is best for your family and for the business itself. Here are some things to consider.
What do your children actually want?
One of the first things you should do is to simply talk to your children. What do they expect? What do they want? Don’t assume they even want to run the family business. They may have their own plans, and you never want to force someone into a career they’re not interested in. It won’t work on any level.
Once you figure out who is interested, if there are still multiple heirs, then you have to decide who is best for the job. If you have one child who is successful in their own right and has the proper education and experience, while the other cannot hold down a job and still lives at home, it may become very clear who would be the better CEO. You do not have to split the ownership 50/50.
If you do leave things in an unequal fashion, though, it’s very wise to talk to your heirs first so that you can explain the plan and the thinking behind your decisions. This way, there are no surprises and lower odds of a dispute over your will and estate in the future.
Planning for the future
The future of your family and your business depends on proper planning. Make sure you know exactly what steps to take to achieve your goals. An attorney can help you understand what needs to happen next.
