TRANSITION PLAN? WHY DO I NEED TO HAVE ONE?

Nov 01, 2018 | Brent DeKoning, Associate Advisor, Lorkovic Wealth Management


Share

Have you ever talked about putting a plan in place for a transition of your farm? Reality is that every farm will be transitioned at some point in time and it will be done one of two ways. As a voluntarily transfer to a family member or 3rd party, or

Have you ever talked about putting a plan in place for a transition of your farm? Reality is that every farm will be transitioned at some point in time and it will be done one of two ways. As a voluntarily transfer to a family member or 3rd party, or involuntarily through your estate / will.

It happens to often that a busy farmer will have what they want to do in their head & heart, which is great. But they don’t have it on paper documented out, which leads to the question what if something happens to you in the meantime? How can we make sure what’s in your head & heart happens for the farm and is documented on paper? How can you make sure that what might be your most valuable asset carries on your legacy in a well thought out tax effective strategy that gives the farm the best opportunity to succeed and keep family harmony?

Without a documented plan in place, you can be more susceptible to an involuntary sale or transfer of your farm. A formal transition plan puts you in charge of a voluntary transition, giving you greater choice about how and when you begin this important process.

Planning a voluntary transition will be more pleasant than planning for an involuntary transition.