Archive for December 2024
Kindred Podcast Episode 8: Family trust or LLC for succession planning?
When planning to transfer a family business or valuable assets to the next generation, one common question that comes up is whether to use a family trust or an LLC (Limited Liability Company) for succession planning. Both options can help you manage assets, protect wealth, and ensure a smooth transition. However, each comes with its own advantages and disadvantages…
Read MoreWhat are the tax implications of different ownership structures?
Understanding the tax implications of different farm ownership structures is crucial for both succession planning and the eventual sale of your farm. This knowledge will help you minimize tax burdens and maximize your wealth. Let’s explore the common ownership structures—sole proprietorships, partnerships, corporations, family-owned farms, and trusts—and their tax implications in a way that’s easy…
Read MoreWhat contingency plans should we have if the next generation decides not to farm?
When it comes to farming, you’ve likely put a lot of love, sweat, and hard work into your farm. But what happens if the next generation decides farming isn’t for them? It’s important to have a good contingency plan in place to ensure your farm’s legacy continues, even if your children or other family members…
Read MoreKindred Podcast Episode 7: Operational Skills the Next Generation Will Need to Successfully Run the Farm
Farmers today face a rapidly changing world. As farms grow more complex, passing the farm to the next generation requires much more than a transfer of land. The next generation of farm operators must develop a wide range of operational skills to ensure the long-term sustainability and profitability of the farm. These skills go beyond…
Read MoreWhat financial assistance or government programs are available for farm transfers?
When it comes to farm transfers, especially for family-owned farms, transitioning to the next generation or finding the right buyer can be a complex process. However, there are various financial assistance options and government programs available to help. Let’s dive into some of the key support systems designed to aid farm transfers, ensuring the process…
Read MoreShould we separate ownership of the land and the farm business for succession purposes?
When thinking about passing your farm onto the next generation, one important question crops up: “Should we separate ownership of the land and the farm business for succession purposes?” While it might seem like a lot to wrap your head around, let’s break it down to make it easier to understand. What Is Farm Succession…
Read MoreHow do we ensure that the farm’s suppliers, customers, and employees are ready for the change?
Ensuring that a farm’s suppliers, customers, and employees are ready for a change, such as during a farm succession or sale, is crucial for a smooth and successful transition. Effective communication and planning play key roles in making sure everyone involved feels informed, prepared, and confident about the changes ahead. Let’s dive into the steps…
Read MoreHow do we balance the need to be fair with the need to keep the farm viable?
Balancing fairness and keeping a farm viable can feel like trying to juggle two very important but different goals. This is especially true when you’re thinking about passing your farm on to the next generation or selling it while ensuring everyone involved feels they’ve been treated fairly. Let’s break down how you can manage both…
Read MoreWhat happens if the farm succession plan is challenged after our death?
Understanding Farm Succession Plans First, let’s talk about what a farm succession plan is. A farm succession plan is a detailed document that outlines how your farm will be managed and who will take over after you retire or pass away. It typically names heirs and assigns roles and responsibilities to ensure the farm continues…
Read MoreWhat Estate Planning Tools Should We Consider to Protect Farm Assets from Creditors or Divorce?
Protecting farm assets from creditors or divorce is a critical aspect of estate planning for farm owners. Farms are not just businesses; they are often family legacies passed down through generations. To safeguard these valuable assets, it’s essential to use effective estate planning tools. In this guide, we’ll explore the best strategies to shield your…
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