This month we’re focusing on farm transition and estate planning and I want to start by sharing this story about a fifth-generation farming family I’m currently working with.
The fourth-generation are still alive, and the sixth-generation are about to come through. On the surface, their estate plan seems to be taken care of, but delving deeper, we’ve found messy and complicated structures around various ownership of land and other assets. Unfortunately, given the unique nature of farming, this situation is a common one.
Below we take you through how estate planning and farm transition go hand-in-hand with having your succession plan in place, and how we’ve created a solution that just might help you make it though with the whole family intact.
Good planning ensures that land, wealth, knowledge, and assets accumulated are passed down to the next generation and beyond, but without the appropriate planning and structures in place, these things can get lost.
Coming back to what I wrote about in last week’s article, your estate plan isn’t done and dusted just because you have a Will. That’s because the assets held within a farm business are often held in complicated structures, such as Companies, Super Funds, Trusts, and Partnerships, and usually, it’s a combination of these. As a result, assets are rarely divided easily or equally, which can create a certain degree of complexity within the farm structure itself but also within families and relationships.
In this scenario, the fifth generation are looking to a future where their sons and daughters can take over the family farm but they can’t move on without knowing what their position is once their parents pass away.
This kind of uncertainty is unhealthy, and if ignored, it can lead to circumstances that create disunity among family members. Our goal? To make sure the whole family is still together at Christmas.
But once you get past the discomfort and start sorting through the confusion, relationships inevitably improve because each family members gets to voice their thoughts and opinions and people inevitably know what to expect and what role they play.
After we sent out last week’s email, we received a lot of responses from farmers and business owners alike who’ve been affected by their family’s estate plan. The sad things is, some families are no longer talking and have gone their separate ways completely. Others had no idea what the estate plan entailed until their parents had passed and it was too late to talk about.
What we’ve learned from working side-by-side with farming families over the past 30 years is that as difficult as it can be to address these issues, the conversations need to be had. In the long run, it’s more difficult to lose a family member due to something that could have been prevented, than it is to avoid an uncomfortable conversation.
The most important thing to know is that you don’t have to do this alone. There are tons of resources and professionals that can help you navigate the complexity that is farm transition and estate planning, and here at Lifesolver, we’ve packaged it up into a bespoke package catered to you and your needs.
At Lifesolver, we’re really good at helping you discern what the long- and short-term goals are for your family and your farm, and we make sure you have the right strategy in place to get there. One of the ways we do this is through Farm Business Success, which is designed to help you achieve family and business harmony through clarity, profitability, and financial security.
Throughout the time we work together, we’ll help you develop your long-term vision and a strategy to see it through, so that you can have peace of mind, knowing your family farm will survive through to the next generation and beyond. This includes things like:
The best part? We’ve packaged it up in a simple a straight-forward way so you can work through each of the keys things that will make the most difference to improving your situation. We also work side-by-side with you the whole way so you don’t have to do it alone. Contact Matt at Lifesolver Financial.
Leveraging over 30 years of experience working with farmers, our team can help you with everything you need to achieve farm business success and a bigger future. Call us on (02) 5750 0519 or reach out to Matt: Info@lifesolver.com.au
*This blog/article is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances. If relevant: Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
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I’m often asked this question when discussing retirement and estate planning with a client, and it’s a difficult question to answer.
Thats why I often turn the question right on its head and ask a question of my own.
