Family Farm Planning
October 19, 2015 - Posted by: admin - In category:
What worked well in a prior generation may not be the right solution today.
We often talk to farmers who are rightly concerned about how to best ensure the well-being of their family and their farm operations over time. In many instances, these farms are multi-generational family businesses that are highly important for such historical family connections and traditions. At the same time, these farms are now very valuable from an economic perspective. Though such farms are often not “cash rich” operations, the sum value of the land and equipment comprising such farms can be very significant.
When we begin discussions with farmers, the key consideration is most often the desire to do what is right and best for their family–to ensure that however farm operations are transitioned, there will be peace and harmony within the family, both now and in the future. Protecting the legacy of the farm and providing well from an economic perspective are also high on the priority list. As with most other business and estate planning situations, there are NOT “one size fits all” situations. What is recommended for one farm and one family may not be the right plan and structure for another. This is not surprising, since the farm and the individuals are all unique and therefore, the best solutions for the same will also be customized and unique.
Matthew T. McClintock, J.D., Vice President of Education at WealthCounsel, an organization of which we are a member, has recently written an article titled “3 Succession Solutions for Family Farms.” PLEASE CLICK HERE TO READ THAT ARTICLE. Matt does a good job in that article summarizing the most common solutions for family farm planning.
As always, we are here to help!