By JACINTA TAYLOR
Published: | Updated:
In the age of equality in the workplace, it’s still a man’s world when it comes to who inherits the family firm.
A study found family businesses are more likely to be passed on from father to son rather than to daughters.
And sidelined daughters are more likely to put up with it instead of contest an unfair will for their share.
In a survey of 250 British family business owners across a range of industries, just over half of men said they would give preference to their sons when passing on their firm.
A mere 36 per cent would pick their daughters. But it was different for mothers in business, who said they would not allow their child’sgender to influence their choice.
‘This research highlights a complex and long-standing issue in family-run businesses where traditional set-ups often see sons taking on central roles,’ said Debra Burton, from Lime Solicitors, which conducted the study.
‘Women are not only at risk of being pushed away from the family business, but they are also less likely to challenge a will.
‘If a son is already active in a business, he may be naturally seen as the one best positioned to carry on the legacy.’
In a survey of 250 British family business owners across a range of industries, just over half of men said they would give preference to their sons when passing on their firm (file image)
Debra Burton added: 'Women are not only at risk of being pushed away from the family business, but they are also less likely to challenge a will if they felt it was biased towards its beneficiaries’ (file image)
She added: ‘Women are not only at risk of being pushed away from the family business, but they are also less likely to challenge a will if they felt it was biased towards its beneficiaries.’
Meanwhile, the survey also revealed that half of the men surveyed were ready to contest a will if they felt it unfair and would also fight for a larger share of an estate they believed they deserved.
In contrast the women’s motivations for contesting a will were focused on protecting the deceased intentions with 63 per cent of women only willing to contest a will if they thought the relative had been coerced or the will had been forged.
Inheritance disputes legal director Alistair Spencer said: ‘The goal should be to respect family dynamics while protecting both the business and beneficiaries’ interests. It’s a delicate balance but with proper planning, it’s possible to mitigate risks of disputes while ensuring fair treatment for family members.’
A similar study conducted by Cynergy Bank six years ago concluded that forty-two per cent of those intending to keep the business within the family admitted they would hand it over to a male relative, while just 22 per cent would allow a female relative to take charge.
Traditional male dominated industries, such as construction, were even more inclined to pass ownership down through the male line.
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