About only an estimated 50% of farmers and ranchers actually have an up-to-date estate or succession plan, or any estate plan at all. This may be due to a number of reasons including failure to create a retirement plan, wanting total control lof their land, or just lack of awareness. However, it is important for the prolongation of the estate’s success that a proper succession plan is put into place.
Here are some steps towards getting your succession plan in the works:
List your Assets
Be sure to keep a detailed inventory of the assets currently owned, how they are owned, any outstanding debt that may need to be settled and how much your assets are worth currently. Within the document, be sure to include any family and personal details that may bw relevant in the event of succession, a will if there is one ready, documents for trust or entities that may be in place, total assets and businesses in detail, inventory of grain and livestock, automobiles with current value stated, and any other loans or obligations you may have.
Have a Family Meeting
Gather everyone who may be a potential successor to your assets and discuss an agreeable way to divide all assets including inheritance, properties or any personal memorabilia that may hold sentimental value. After a settlement is agreed upon, the current asset holder may reach a decision alone and proceed to document the final agreement.
Seek an Attorney
Once the list of assets as well as the list of successors have been finalized an attorney may provide you more guidance on how to execute the succession process so that it may be successful. This may include deciding which tool to use in the event of succession i.e: a will, LLC, a trust or a combination of these things. An attorney’s advice here is crucial as they may know the ramifications of each route.
After the succession plan is writted and signed, immediate family may be informed. As your assets change overtime, there may come a time where the succession plan will need to be amended, however the process will not be as strenuous as there is already a foundation to work off of.
