HERITAGE
MAKE 2019 THE
by Evan D. Anema, Attorney at Law VistaComm Guest Contributor
YEAR OF THE FARM SUCCESSION PLAN It’s that time of year again! Days are growing longer—farmers are itching to get back in the field full force. Farm succession plans are being dusted off and reviewed. OK, I’ll admit that the last one probably isn’t happening . . . but it should be. Successful farmers often get so focused on their daily tasks, they forget to step back and ask how all the daily toil fits into the bigger picture of their farm succession plan. As ag producers begin a new year of farming, I want to suggest the “Top 5” things farmers should not lose sight of in furthering their farm succession plan. It just makes good agri-business sense that we’re all aware of the following important succession initiatives. 1. Select a Team of Advisors. Every farm needs to identify a team of advisors to assist in the farm succession process. These advisors typically consist, at a minimum, of the following: (1) an attorney, (2) a CPA or tax return preparer, and (3) a financial advisor. The attorney will prepare the necessary legal documents while providing valuable advice to maximize the estate while avoiding pitfalls. The CPA or tax return preparer will identify tax minimization opportunities. The financial advisor will manage financial products and analyze cash flow to ease concerns about life during retirement. And finally, these advisors will provide a system of checks and balances to ensure that the producer’s best interests are always being served.
VISTACOMM.COM
2. Create a Farm Succession Plan. Every family is unique. Every farm is unique. Consequently, every succession plan MUST be unique. Keep this in mind as friends and neighbors are consulted to see what they are doing. Notwithstanding that uniqueness, most farm succession plans typically consist of two main components: (1) an estate plan (i.e. Revocable Living Trust/Last Will and Testament) which states what will happen when the owner passes away, and (2) lifetime
58
(continued on page 8)
The average age of a U.S. farmer is 58. Nearly 1/3 of U.S. farm operators are older than 65. (United States Department of Agriculture)
ISSUE 1 2019 AGRI-INSIGHTS
7
