If you run a company, then you have different options available when it comes to dividing it between your heirs.
You may choose to divide the company equally, distribute unequal portions or give parts of it to some heirs and not others.
Consider the circumstances
The specific circumstances at play have a significant impact on your decision. The company’s future success, family dynamics and future needs of your heirs should all come into consideration when making a decision.
If accusations of unfairness are likely to arise and damage relationships, then it may be tempting to split the company equally. However, there are ways to divide your estate that leave your heirs satisfied, even if they did not all get a portion of the company.
Infighting, drawn-out litigation and other factors can disrupt the operations of the company and the heir’s lives. If the people inheriting the company have drastically different ideas about the direction the business should take, the business may suffer. Think about the consequences that can arise when dividing the company and act to minimize disruptions for your heir’s personal and business lives.
Decide what to communicate
Depending on your circumstances, you may want to communicate your wishes to your heirs. This can allow them to offer feedback, resolve conflicts and prevent claims that you were under undue influence when dividing the company.
Deciding how to divide your company between your heirs is not always easy. While the process can require much thought and planning, it is worth it to ensure the future success of your company and heirs.