Inlaws and Outlaws

The old phrase “Blood is thicker than water” usually plays a role in a family business – and I bet yours is no different.  A tendency exists to sometimes pay closer attention to the needs and wants of direct family members versus those that are unrelated or related only through marriage (i.e. in-laws) when it comes to thinking about succession planning.  BIG MISTAKE!   

Non-family members and in-laws often play a big role in either the direct management of your business or in helping direct family members shape their personal and business goals.  Obviously, it is important for you to engage these individuals in the long-term planning, goal setting and succession planning process for your business.

"Cast a bigger net and engage the in-laws EARLY in the process. 
 It will pay mucho dividends”.

When a family member becomes adversarial to the family members that are directly involved in the business (i.e. outlaws), it is important that you recognize that their goals are significant – and, should be understood.  

HOWEVER, if their goals are counterproductive to the future success of your business, their opinions and goals certainly do not necessarily need to be included in your overall farm plan, just noted, observed and dealt with accordingly.

For example, a family member not involved in the business may have the goal of owning land outright if and when the time comes to inherit the land as opposed to keeping in the business for productive use.  Let’s assume that they do not want to guarantee that the farm will have continued access to that land.  Their goals could be harmful to the overall success of your succession plan, especially if one of the central goals is to keep the farm business viable in the future which may require access to this land.

On the flip-side, an off-farm sibling might have no desire to own a piece of the farm and only wants to have certain family heirlooms as part of any inheritance as a memory of their upbringing. If they’re not involved in the discussion at some level, the long-term plans of the business and the goals of the succession plan might assume otherwise – to a great disappointment to the off-farm sibling.  

So -- it is very important to involve these individuals in the discussions, but certainly without any guarantees that their every wish be fulfilled.   Good luck!