But fairness does not always mean equality. And for parents who have spent a lifetime convincing their children that they love all of them equally, this hurdle can be a tough one to cross. If only family members are considered, for example, look first to see who has the most aptitude and interest. The earlier the planning process starts, the more time and thought the owner can put into answering the questions, experimenting and testing some options. Giving one employee additional responsibilities, for example, might help in gauging his or her readiness for a top slot.
Professional advisors can help in sorting through the possibilities.
These advisers also can help the owner overcome some of the obstacles the plan might create. For example, tax consequences are a key concern for many owners, and good advisors can help find ways to minimize the liability. The issue of financial fairness for all family members also can be addressed after theframework for a succession plan has been laid. Preferred stock plans, life insurance and the sale, gift or bequest of other assets are just some of the tools that can be used to balance the proceeds for surviving heirs. Once objectives and motives are fully understood, professionals usually can find ways to develop a plan that all family members will find to be fair.