It’s never too soon to decide who will care for the family farm when you are ready to pass the torch to the next generation. Unfortunately, it is a conversation all to often postponed until it’s too late. A recent article on estate planning notes that, “Individuals put off estate planning because they think they don’t own enough, they’re not old enough, they’re too busy….then when something happens to them, their families have to pick up the pieces” (http://www.estateplanning.com/What-is-Estate-Planning/). As terrifying as this conversation is, you do not want to hand your family a legacy of tough decisions and unassigned responsibilities. You can start planning today by asking yourself the following questions.
- To whom should the farm be left?
The worst thing you can do is leave all your hard work to someone who has no appreciation for it. Have various family members been involved enough to understand the work load? Do those you have in mind share your love and vision for the land? Are they likely to treat the legacy with respect?
- Is my current work load suitable to my strength and abilities?
You might be working in a very profitable niche of the farming world; but if you find you are struggling to keep up, you should carefully examine your priorities and be honest with yourself about whether or not this is worth it. The lighter your burden, the smoother the transition will progress.
- Am I going to divide my estate or keep it together?
It’s very important to answer this question, especially if you have multiple beneficiaries. One of the biggest deterrents to proactive estate planning is the fear of causing strife within the family. As such, you need to think carefully about who will receive what from your estate. Do you need to sell some land and set the cash aside? Do you need to scale back and invest those funds elsewhere? While some strife is inevitable as your loved ones work through their grief, much anguish could be avoided if everyone sees your will as a clear plan of action.
No one wants to contemplate life after their death, but it is a reality we must all face. Show your family you care by helping them into the transition now through thoughtful planning and preparation. For more articles on farming-related issues, contact us and see what we have to offer.
