Farm Succession Planning

The true secret to the farm’s longterm success stands out as the ability (no definitely not the ability but the motivation) to handle what is necessary for you to pass the farm from your current senior generation to the next. And while the successor is usually a person you are related to, it doesn’t have to be. It may be a valued employee or perhaps an individual unfamiliar to you at this time.

In any case the farm has to continue to run without having to be reduced because of a range of unseen and frequently unnecessary expenditures. A wide selection of techniques exist to minimize, divide, as well as postpone the primarily preventable transfer fees only one surely inferior business person wouldn’t capitalize on them.

Since failing to adequately take into account what you would like the future for the farm operation to be like, and then have the important strategic discussions with the family, will more than likely continue the inertia that has kept you from taking all the actions which have to be taken.

The results, a lack of considering and documentation which causes not just a loss of momentum but a loss of capital and in some cases the farm as well.

Obviously passing down the farm is important to you personally or you wouldn’t be scanning this article . [Read more →]

Technorati Tags: Farm Estate Planning, Farm succession planning, Succession Planning

A long time ago a notable estate planning attorney informed me that, from his many years of experience, farms and businesses are organized because, in his words, that is the way they were initially organized.

I was young and inexperienced and didn’t fully grasp what he meant when declared one of the most damaging stumbling blocks for success concerning farm succession planning has a lot to do with the manner in which the farm was originally organized many, many years before, not ever modernized.

He explained that farms, when they were originated, were traditionally established as sole proprietorship’s, partnerships, or corporations according to the recommendation of their initial accountant, attorney, banker, or successful friend. That was what these trusted people recommended depending on whatever they knew about the situation then. Plus it had worked out.

Fast forward twenty years. [Read more →]

Technorati Tags: Farm Estate Planning, Farm succession planning, Succession Planning