What to Do in 2026 When Your Kids Don’t Want to Take Over the Family Business

What to Do in 2026 When Your Kids Don’t Want to Take Over the Family Business

Many often assume that inheriting a family business is an amazing opportunity that is impossible to turn on; however, some people don’t desire such a responsibility. It is important to understand that sometimes, heirs will turn down inheriting a family business, whether to pursue other career paths or simply because they don’t have the passion or skills to run the business. Either way, there must be a plan set up in place to ensure that there aren’t financial losses and family conflict. 

Fortunately, there are many estate planning tools in 2026 that can be used to avoid confusion and chaos. This article will walk through why heirs may decline this opportunity and the various options that are available for families to plan for such a case.

What to Do in 2026 When Your Kids Don’t Want to Take Over the Family Busines

Why Heirs May Decline

There are many potential reasons why heirs may choose to decline taking over a family business. Some may lack interest in the industry, making the business seem more like an obligation than anything else. They will most likely not want to step into a leadership position in a business sector where they do not have the skills to effectively fulfill such a role. 

Another reason heirs may decline is due to their geographical distance from the business. This simply makes it logistically challenging to effectively manage operations. Heirs may also already be committed to pursuing their own career. It is common for them not to be willing to abandon the work that they are doing and go into a completely different field. 

A very significant concern that heirs have is the financial risk that comes along with running a business. Family businesses can be unpredictable, and it is understandable that not everyone wants to be in an industry like this. Many are only comfortable with consistency and want financial security; in this case, they may choose to remain in their current career. It is crucial that business owners have identified and understood these concerns in order to establish the proper plan that can accommodate these concerns instead of facing surprises in the future. 

Succession Planning

One effective option that families look into is succession planning with non-family leadership. This is when the business owner appoints experienced professionals to handle day-to-day operations and manage the business overall, while the heirs still benefit from the profits while remaining as shareholders. We recommend this for when heirs do not feel prepared to fulfill leadership roles but still want to keep the business in the family. When creating a succession plan like this, it must outline the management responsibilities and expectations, and thoroughly explain procedures to ensure the company maintains growth and efficiency when put under the new leadership. In our opinion, this is the most efficient plan for families to preserve their legacy while still separating ownership from management and control.

Selling the Business

If it is confirmed that no heirs would like to take over the business, another option is to sell the business before death. When you initiate the sale during your lifetime, you are able to negotiate the best price and select the best person, in your professional opinion, to represent the values and mission of your business. Selling while you are still able to be in control of this process, ensures that the business is sold in a thoughtful way, where the business’s reputation and legacy will be preserved. Not only that, but this also gives you, as the business owner, the opportunity to fairly distribute the funds to your heirs. This aims to minimize future conflict and also ensures that the family members have an equal share of the business. In our professional opinion, this option offers peace of mind for the family and financial security for family members.

Understanding Trusts and Buy-Sell Agreements

The options that were discussed already are effective for families where family dynamics are simple, and it is known what the heirs want for their future; however, when it comes to families with more complex relationships, you may consider legal tools. If you place the business in a trust, a person you name as the trustee will manage the operations of the business until a sale occurs. This is often used if your heirs haven’t decided whether they would be fit to run the business. A trust holds the asset until the time comes where your heir can make a well-thought out decision. A buy-sell agreement, on the other hand, sets clear rules for who can buy a departing owner’s share. This can be a co-owner, business partner, or an interested child. It gives uninterested heirs a fair payout, avoids family disputes, and keeps the business in the hands of people dedicated to running it. Both of these legal strategies protect the business from instability and aim to reduce the emotional strain that may arise on families in the future.

What Steps to Take Next

You must have a clear and thorough plan set in place. Without this, your heirs will be forced to navigate their next steps with the business, while grieving. What you can do now is have an honest and open conversation with your heirs, exploring all of the different ownership structures and evaluate which tool best aligns with their desires and lifestyle. It is crucial that you are utilizing transparent communication so that your intentions are clear, both legally and in the relationship with your heirs. Early planning will also offer the opportunity to ensure that this entire process results in reduced complications, less legal costs, and a stable future for your business. The last thing you want to do is leave important decisions up to your heirs under pressure. 

A family business isn’t just seen as a money-maker, this can be a representation of your family’s hard work, skills, and dedication. It must be in good hands. You must start your planning now. Talking to a professional will help to keep the business as a sensation, rather than a family dispute. Call (718) 333–2395 to speak with the Trust and Estate Planning Law Office to discuss your options, create the most effective plan for you, and most importantly, preserve your family legacy.

Handling Bank Account Funds in an Estate

Handling Bank Account Funds in an Estate

How you handle bank accounts, like any other asset owned by a deceased individual, depends on how they were owned. Here are a few scenarios in which funds are handled and how one may go about handling them under certain circumstances. 

Handling Bank Funds in an Estate

Solely Owned Bank Accounts 

If the deceased individual owned the account in his or her own name and did not identify a payable-on-death beneficiary, the account will certainly be subject to probate. Probate is the legal process that takes place after the death of an individual to make sure that their assets are properly collected and distributed to the appropriate beneficiaries by the appointed executor. If the deceased left behind an estate plan, identifying their beneficiaries is as simple as reading the will; if not, their assets will be distributed according to New York’s intestate succession laws. However, if the total amount of probate assets is low enough to count as a "small estate" under state law, the rightful heirs will be allowed to claim the money using either streamlined probate processes or an affidavit.

Accounts with a Payable-on-death Beneficiary

These are the straightforward ones: because the money is still not part of the deceased person's probate estate, you do not have any control over it as executor. 

The money can be claimed by the beneficiary specified by the deceased individual by visiting the bank with a death certificate and identification. The paperwork in which the account owner chose the POD recipient should be kept with the bank.

Jointly Owned Accounts 

In most situations, if a deceased individual has a joint account with another individual, the surviving co-owner becomes the account's owner immediately. To be transferred to a survivor, the account does not need to go through probate.

The Right of Survivorship

There are, however, exceptions to this general norm. The "right of survivorship" applies to most accounts that are held in the names of two individuals, but not all. In other words, if one of the co-owners dies, the money immediately passes to the surviving co-owner. (It typically works in the same manner with retirement funds.) 

Sometimes it may be obvious that the account has a right of survivorship. Suppose the account is named "Lisa Johnson and William Johnson, JTWROS." (Joint tenants with right of survivorship is the acronym.)

It's likely still a joint tenancy account if the account registration document at the bank only includes two names without mentioning joint tenancy or right of survivorship. In Texas, for example, in order to establish a joint tenancy account, the account owners must sign a separate contract in addition to the bank's registration card.

Disputes About What The Deceased Intended 

When two people—say, a married couple—open a joint account, no one will argue that when one of them dies, the assets in the account go to the survivor. When an elderly person adds someone else's name to an existing bank account, the situation may be different.

This is frequently done to avoid probate in the event of the original owner's death. However, the second name is often added only for the sake of convenience—that is, so that the other person may write checks on the account and assist the original owner. Alternatively, the arrangement is meant to provide simple access to the assets to the second person following the original owner's death, so that the funds may be utilized for the burial or other expenditures.

When the original account owner dies, the person whose name was added to the account legally becomes the outright owner of the money. Unless it’s in writing, any previous agreement about how the money should be spent is unenforceable. The money belongs to the new owner, who can spend it on anything he or she wants. If family members are certain that the deceased individual desired a different outcome, they will have a hard time getting the money back from the surviving joint account owner if they go to court.

Bank Accounts Held In Trusts 

Many people put their significant assets in a living trust to avoid having to go through probate later. You'll be able to tell if the deceased individual had a bank account in trust based on the account statements, which will reveal who the account was owned by for example, "Lisa Johnson, trustee of the Lisa Johnson Revocable Living Trust dated September 9, 2003.”. The account, like other trust assets, is managed by the successor trustee, who takes over once the original trustee passes away. The funds will be transferred to whoever inherits them under the provisions of the trust deed by the successor trustee.

The Law Office of Inna Fershteyn can assist you in handling bank account funds in an estate. Please contact us at (718) 333-2395 for an experienced and diligent estate attorney who is familiar with the probate and trusts process.