Estate Planning Can Save Your Farm – AG Matters

It's something that no one wants to talk about, but if keeping your operation in the family is a priority, it's a must. Estate planning can prevent the farm from ending up in the someone else's hands. Cornell Cooperative Extension has some tips on making the process less of a burden.

As the old saying goes, "begin at the beginning;" develop a strategy and ask for guidance from some professionals. The emotional side of estate planning can be overwhelming. Having a conversation about life and death is something we want to avoid. However, by not planning, you can lose much of your fortune during the inheritance process.

communicate with those the plan will effect.
write down your objectives for the plan.
gather the information required.
seek a professional advisor.
review the plan when appropriate.

While family members don’t need to know the nuts and bolts of the plan, they should know the conversation is taking place. This may prepare family members effected, that conversations will be taking place that could include their thoughts, desires and concerns as the process unfolds. For, example choosing one family member over another as executor or trustee could be a source of conflict, and perhaps an attorney might be a better alternative.

You may have special situations that warrant estate planning, which has nothing to do with the health of your bank account. Such as children from a prior marriage, substantial debt, creditor protection issues, special needs children, transfer of business control, or irresponsible heirs. The need to review and writing your goals and objectives is the beginning of the estate planning process to identity what is unique and important to you. If you do not follow this process then you will never going to get a document based on what you want or a plan that will meet your needs.

Next gather financial business and family background information necessary to analysis the size of your expected estate tax costs, the liquidity and degree of risk associates with your current investments, and for determining how you should progress from your current status to achieving your financial goals.

The assembling of financial data should include in detail; ownership, current value, and any additional information you can obtain, such as serial numbers and CUSIP number if available. Also be sure to organize legal records, such as Deeds, contracts, partnership agreements, and stock certificates. Making copies of all these records and placing in a three-ring binder to bring to you initial meeting with an attorney.

Get more information on estate planning, using partnerships and corporations and transferring ownership at CCE's webpage.
SOURCE: Cornell Cooperative Extension