Dads’ will shocker: Sons set to inherit as daughters sidelined and silent, research finds
22 November 2024
When it comes to passing down the family business, dads are more likely to favour their sons and leave their daughters waiting in the wings, research by law firm Lime Solicitors in Colmore Business District has revealed.
In a survey of 250 family business owners[i], 51% of men said they would prioritise their sons when passing on their company, with only 36% choosing their daughters to carry on the legacy.Mothers in business, however, didn’t show any preference between genders[ii].
Beyond these biases, further research by Lime Solicitors found that women are less inclined to challenge a will if they felt they had been unfairly excluded[iii] – making them vulnerable to being sidelined and denied access to their rightful inheritance.
Debra Burton, inheritance disputes partner at Lime Solicitors, said: “Our research found that 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.
“In England and Wales, children have a right to challenge a will if they believe it does not make ‘reasonable financial provision for them.
“This research highlights a complex and long-standing issue in family-run businesses where traditional setups often see sons taking on central roles, particularly when fathers are making succession decisions.
“If a son is already active in a business, they may be naturally seen as the ones best positioned to carry on the legacy.
“However, family members outside the business may feel excluded, which can lead to disputes and, potentially, costly litigation.
“Fairness in family succession is often seen as crucial and while financial provisions for non-involved family members or alternative inheritance plans can sometimes balance out the situation, it requires thoughtful planning.
“However, a family business can often be the most valuable asset. If the numbers don’t stack up and there are not enough non-business assets elsewhere to make up the difference, then someone is going to lose out.”
Almost half of men surveyed (49%) said they would contest a will if they felt it was unfair, compared to 40% of women.
Similarly, 41% of men said they would pursue a larger share of the estate if they believed they deserved it, compared to 30% of women. Additionally, 46% of men cited inadequate financial provision as grounds for contesting, compared to 29% of women.
In contrast, women’s motivations for contesting were more focused on protecting the deceased’s intentions, with 63% of women willing to contest if they suspected coercion and 73% raising concerns over potential forgery.
Alistair Spencer, inheritance disputes legal director at Lime Solicitors, said: “Ultimately, whether a challenge is motivated by personal financial concerns or by a desire to uphold the deceased’s wishes, every case needs to be carefully considered on its individual merits.
“There are ways to address potential challenges: families can consider alternative provisions for non-involved family members, by leaving them other assets or through innovative solutions within the business itself, if finances allow.
“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.”
