Succession Planning
WARNING: Passing Your Business or Farm to the Next Generation Can Be a Risky Proposition.
7 out of 10 family owned businesses will not survive the transfer of the business from one generation to another. Lack of succession planning and discomfort discussing topics such as aging, death, and financial affairs too often results in the loss of a multi-generational legacy. Whether driven by unexpected estate taxes, illiquid assets, or family friction between active operators and off-site heirs, the cost of waiting is high.
If you want to ensure the land, equipment, real estate, and financial security you built through years of early mornings and late nights will support future generations, you must clarify your plans and get them in writing.
Get professional succession planning advice for dealing with these key issues facing farm business owners and more…
What will happen to your farm business?
Do you plan to pass the operational reins to a son or daughter, bring on a younger partner, lease out the land and physical assets, or sell? We help you weigh the financial impact of every option, including how to pull cash out of a capital-heavy operation so you can actually afford to retire without putting a financial stranglehold on the next generation.
How can you minimize the tax burden upon transfer?
When highly appreciated land, commercial real estate, or heavy equipment lines change hands, taxes can butcher your equity. From capital gains and depreciation recapture to stepping up basis on real estate, review your options with a financial advisor who understands high-asset tax strategy.
If you are not running the business, who is?
For business owners in the agriculture industry, ownership of assets and daily operational management are two entirely different things. When you step back, who calls the shots on day-to-day decisions, capital expenditures, and vendor contracts? Will the family members doing the heavy daily lifting have the authority to run things, or will they be tied to non-active siblings who only hold legal equity? Defining these roles in legal agreements prevents operational gridlock down the road.
Inherited assets carry massive emotional weight. Especially when one child spent 20 years putting sweat equity into the business while their siblings moved away and built outside careers.
If an estate plan simply splits land or business assets equally, the child running the operation is often forced to take on crippling debt just to buy out their siblings. Or worse, sell off core assets just to pay out the estate. We help you structure buy-sell agreements, life insurance liquidity, and entity splits so non-active heirs are treated fairly without bankrupting the family business.
Protect what you’ve built and ensure a smooth transition for the next generation. Schedule a succession consultation today. We’ll look at your land, equipment, and farm business structure to build a tax-smart plan that funds your retirement and keeps your legacy intact.