More than half of American business owners do not want their children to inherit their business, according to a survey by Versta Research for Wells Fargo. The study involved over 1,000 “wealth creators”, defined as U.S. adults aged 50 or older with at least $1 million in investable assets.
Reasons given for this reluctance range from doubts about their children’s ability to successfully run the business, to concerns that a substantial inheritance could discourage their children from pursuing their own financial achievements. An overwhelming majority of the parents (94%) expressed a desire for their children to carve out their own paths instead of following in their footsteps.
