How Can I Pass on the Family Business to One Child and Still Be Fair?
The strengths, skills and persistence that build a successful business are also skills that help prepare that business for a successful transition to the next generation. Unfortunately, many business owners do not see the importance of using those same skills to prepare for the transition. They assume the process, and the result they want, will occur even if they do not specifically work for it.
Just like running a business, obtaining the desired result requires applying the appropriate strategy. This strategy should address: 1) which children will continue with the business (and in what capacity), 2) how the parents’ assets (including those that are not part of the business) are to be distributed, and 3) how these goals can be meshed to create successful results
Take the example of a “land-rich but cash-poor” farm where one child wants to continue the farm, but the other children have no interest. Will the child who wants to farm be required to work with children who just want the farm to be sold? Will the farm have to be sold so that each child receives an equal share? If the farm is not sold, must the other children be left out in order for the farm to continue?
Understandably, many family business owners see this as an “either/or” conundrum. They can ensure the farm continues, but only by depriving the other children. Conversely, they can ensure each child receives an equal share, but only by selling off the assets. They fear anything in between will force children with completely different interests and motives to work together.
Just like running a business, obtaining the desired result requires applying the appropriate strategy.
In reality, there are several other options to consider; and there are even ways to pass on cash or other assets to some children and still pass on the family business to the child or children who are interested.
*Steve Wright is an Idaho licensed attorney. This column is provided for informational purposes only and should not be construed as legal advice, which requires a specific discussion of specific circumstances.
© 2026 Steven J Wright
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