A Publication of WTVP

If you own a family business, chances are you expect your children to eventually succeed you in owning and running the business. And as a parent, you probably want your estate divided among your children as equally as possible upon your death.

But what happens if not all of your children are active in the company? It makes sense to leave the business to the child or children who are capable of managing it. That leaves you with a big challenge: how to balance the distribution of your assets so your other children get their fair share. One obvious solution would be to leave non-business assets of equal value to the children who are uninvolved in the company. But if the family business comprises the bulk of your estate, there won’t be enough assets outside of the business to give everyone an equal share, especially after paying estate taxes.

Strategies to Consider

There are a number of planning techniques you can use to equalize inheritances among your children.

Providing equally for your children is never an easy task, especially when your primary asset is the family business. The child or children who will receive the business seemingly have a favored position. But by reviewing the various options with your insurance and tax advisors, you can design an equitable arrangement for all of your children. IBI