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Leave a Legacy

RSS By: Kevin Spafford, Legacy Project

Kevin Spafford is Farm Journal’s succession planning expert for the Farm Journal Legacy Project.  He hosts the nationally-televised ‘Leave a Legacy’ TV, facilitates an ongoing series of workshops for farm families across the U.S., and is the author of Legacy by Design: Succession Planning for Agribusiness Owners.

Common Issues Regarding the Equal versus Fair Conundrum

Jul 07, 2010
From Legacy Moment eNews (July 02, 2010)
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Though each family’s succession situation is unique, there are a number of factors most owners should consider as they weigh the equal versus fair question:
  • Does the owner want the active children to receive the business free of obligations to outside owners and inactive siblings? If so, are there other resources to equitably fund distributions to other children? 
  • Will a lifetime transfer of the business to the active children create conflicts in the family if the inactive children do not receive an equitable distribution until the owner’s estate is settled?
  • Should an owner consider transferring voting stock to active children and nonvoting stock to inactive children? Though this is not fair in real or intrinsic value, a parent may feel satisfied with the equitability.
  • If there are multiple children actively involved in the operation, are they capable of working well with each other? Or is it necessary to give one of the children a controlling interest?
  • Are the children who are not active in the operation comfortable receiving no interest in the family operation?

Take the time to answer these questions with your family.

News & Resources for you:

Fair versus Equal Q&A: Is there an easy solution to this age-old conundrum?

What Is the Farm Journal Legacy Project?

Leading the Change – Legacy Project Workshops
The next series of Legacy Project workshops are scheduled for Lincoln, Neb., on July 20; Des Moines, Iowa, on July 21; and Champaign, Ill., on July 23. Sign up online or call the Farm Journal Events Hotline for more  information: (800) 909-3681.  

 

 

    

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