Parenting is an important part of getting the next generation ready for ownership. Experiences children have in the family business affect attitudes toward the business, desire to be part of it as adults, and capability to handle ownership responsibilities. Parents influence their children's attitudes toward self-employment, continuation of a business, riskiness of investments, the importance of education, and the benefits of experience in other businesses before joining the family business. As discussed elsewhere in this bulletin, acceptance and affirmation of children are important in this parenting. This is a perplexing question.
Equal treatment is easy when transferring only assets to the next generation.
Equal treatment may be virtually impossible when transferring a business. In spite of the difficulty, judgment of what is fair rests with the current owners of the business. Careful explanation to each person of what is being done and why is crucial. It does not guarantee that all parties will be happy with the decisions. The inability to treat people fairly often becomes a reason to do nothing.