Life insurance is a way to increase an estate’s value just by paying a monthly premium. In the case of a farm, the life insurance can be taken out by the parent, or by a child on the life of a parent. This can help alleviate complications that can arise if certain children wish to take over the farm and …
Using Wills and Revocable Living Trusts for your Farm’s Estate Plan
Last week’s blog post focused on succession planning– this post will focus on farm estate planning by using wills and trusts (both equally important and can be easily confused). Let’s first look at the advantages and disadvantages of a will. A big advantage of a will is that it can be changed or revoked until the testator loses capacity to make, change, …
Why Your Farm Estate Plan Should be Revisited Every Few Years
It is prudent to revisit your estate plan every 3-5 years or when there is a major life event (e.g., marriage, divorce, purchase/sale of major assets, bankruptcy, children). Estate planning leads to business planning, which leads to tax planning, which leads to business succession, which should lead to disaster planning, which may lead to federal farm program planning, which should …
Keep Your Pets in Mind with Your Estate Plan
Farms and pets go hand-in-hand. There are three vehicles that can be used to protect your pets (including horses) after you die: 1) Last Will and Testament, 2) Pet Trusts, and 3) Pet Protection Agreement. Last Will and Testament: In New York, pets are considered personal property like a car or a diamond ring. It should be noted that wills …
Breaking Down the Basics – Some Farm Estate Planning Definitions
Knowing these basic estate-planning definitions may be helpful in any conversation you may have with an estate planning professional: A Last Will and Testament (usually just called a “will” for short), is a document that gives your directions on what to do with your property when you die. It takes effect only after you have actually died, and it must …
With Farm Estate Planning, Start With Your Goals
Your objectives will drive the entire estate-planning process, so it is important to clearly articulate your goals. These goals should serve as a guidepost to your estate-planning attorney in helping to formulate the correct game plan. It might not be possible to fully meet all of your goals; therefore, when you meet with your estate-planning lawyer, make sure to emphasize …
Succession Planning for Your Farming Business
Proud of my little cousin Austin Rincker- He made the cover of the Illinois Field and Bean last month (the flagship publication of the Illinois Soybean Association). He is noted in the article starting on page 6 titled “Successful Succession- Begin With the End in Mind.” If you follow this blog then you know how important succession planning for farms, …
Hear Me Talk Farm Estate and Succession Planning on Heritage Greenhorns Radio
I will be on Heritage Radio Network out of Brooklyn tomorrow, Tuesday, January 14, 2014 from 4-4:30pm ET during the Greenhorns Radio spot. My interview focuses heavily on the farm estate and succession planning (not purposefully – it’s just the way the conversation went). I’m a huge believer that families should have open and candid conversations about succession planning of …
Personal Finance – Smart Women Finish Rich
Hope you are having a lovely holiday season. I’m home visiting family in Illinois right now at the Rincker Ranch. This blog is long overdue. I enjoyed reading this book last summer beachside in Coney Island. A friend of mine, Jeanne Berger, one of the top financial advisors at Chase Bank, suggested “Smart Women Finish Rich” by David Bach to …
Ask Cari: What are the Common Mistakes Farmers Make When Creating Their Estate Plans
I was asked this question by a farm journalist. My response is below. Mistake #1: Believing that having a Last Will and Testament is an “estate plan.” Many people think that “estate planning” is really just hiring a lawyer to draft a Last Will and Testament; however, it’s more complicated than that. A good estate planning attorney will have you …
Conversation Starters about Estate and Succession Planning for Farms
Don’t be afraid to have open and honest conversations with your family about estate and succession planning. “The only thing certain in life is death and taxes,” Ben Franklin famously said; so let us not make the topic taboo. In order for a farm or agri-business to successfully pass to the next generation (if that is what you want), …
Overview of Common Estate Planning Documents for Farms
Despite popular belief, the succession and estate planning process is more than just getting a Last Will and Testament – it’s taking a solid look at your estate planning goals and coming up with a plan that works for you and your family farm (no matter the size). I think it’s really important for family farms to “improve the default …