Before you decide to pass your business to the next generation, be certain that at least one of your children is capable of running it. If you have children who are not a part of the business, have no skills in that type of business and have no interest in the business, then they probably shouldn’t be owners or even shareholders in the business.

If you split the company between siblings, be sure to create a governance agreement, which outlines ways for them to deal with differences. A board of advisers could help mediate disputes. Without the patriarch or matriarch on hand as referee, you find that the children are sometimes at each other’s throats.

Splitting the business equally is not a good move if one child is active in the company and the others are not. Chief Peters wanted to divide his business equally between his two Deji and Seyi and his daughter, Bisi. Deji had worked in the family business for several years, whilst his siblings hadn’t been at all involved; but they received money from their father from time to time from the business.

After some tension and family fights, Chief Peters decided to give the business to Deji and gave the other children other assets of equal value. Fortunately, he was still alive to see the brewing storm that would have ensued. What he did isn’t completely full proof as if the business grows significantly the other siblings will probably come back demanding more.

The most important thing is that you should in your lifetime, carefully consider the various scenarios to help you make the best possible decision in the circumstances.