When estate and succession planning is in the process of taking place, it is important to avoid the most common mistakes. Let’s take a closer look at these errors so that they do not become a part of the current planning.
1) Procrastination
There is absolutely no need to procrastinate when it comes time to formulate an estate plan. Snags and hurdles are bound to come up along the way and it is important to bear that in mind. Getting started as early as possible is what will allow farmers to avoid them.
2) Failure To Make a Plan
Estate planning often falls by the wayside because of an erroneous belief that the farmer is going to live forever. While no one ever plans to pass away, making an estate plan is still crucial. There is no way of knowing what tomorrow brings. It may become necessary for another party to step in and start making key decisions.
3) Lack of Communication
The dividing of assets is not something that takes place in the manner that most would picture. There is no dramatic scene where the entire family is taken into a room and told what they receive after the person who played a leadership role is gone. This is something that needs to be discussed openly before the administrator passes on.
4) No Accumulation of Liquid Assets
The average farmer tends to be land rich and cash poor. To that end, it is necessary for a farmer to consider their costs after they have passed on. Otherwise, the successors could be left holding the bag for a number of cumbersome fees and expenses that can have a negative effect on their ability to continue running the farm.
To learn more about the most common estate planning mistakes to avoid, be sure to contact AgriLegacy for more information as soon as possible.
