Farm Succession Planning Checklist: What to Gather Before Meeting With an Attorney begins with a simple task: write down what makes the farm run. That includes more than the land. Equipment may belong to a business, acreage may be leased, and a loan may depend on the current owner’s involvement. Your attorney needs to see those pieces together to help you plan what happens when you retire, become unable to manage the operation, or die.
You do not need a perfect binder before making an appointment. Start with what you have, note what is missing, and bring your questions. The University of Illinois Extension recommends creating a written picture of the farm that can be updated as the operation changes.
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List the Land and How Each Parcel Is Owned
Begin with every parcel the family owns or uses. Include the farmhouse, outbuildings, and land owned outside the main operation. For each property, gather the deed if you have it and note:
- The names on the title
- Whether the land is owned personally or by a business
- Any mortgage or other known obligation
- Who currently farms or manages it
- Whether someone else has a lease or use agreement
Also list land the farm leases from others. It may be essential to the operation even though it will not pass through the family’s estate. If you are unsure how a parcel is titled, flag it for review instead of guessing. Illinois Extension specifically recommends including land, leased assets, and the legal descriptions found on recorded deeds when organizing farm information.
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Identify Equipment, Livestock, and Other Farm Assets
Next, make a working inventory of the assets used in the business. Depending on the farm, that might include machinery, vehicles, livestock, stored grain, irrigation systems, or grain bins. Note whether each significant asset belongs to an individual, a partnership, an LLC, or another entity.
The first list can be approximate. Its purpose is to reveal what exists and who appears to own it. If you have a recent balance sheet, bring it. Your attorney can tell you which ownership records or valuations would be useful as planning progresses.
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Gather Business Documents and Important Agreements
If the farm operates through a business entity, locate its formation and governing documents. Bring any ownership agreements, buy-sell provisions, and records showing who holds an interest in the business.
Gather written farm leases and other agreements that affect the operation, too. Think about contracts for land use, equipment, production, or sales. An agreement may answer an important succession question—or raise one that the family has not yet discussed.
If an arrangement has only ever been verbal, write down your understanding of it. Do not present those notes as a signed contract; they simply give your attorney a place to start asking questions.
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Make a List of Debts, Insurance, and Financial Accounts
Farm succession involves obligations as well as assets. List mortgages, operating loans, lines of credit, and significant equipment financing. Include the lender, the borrower, and where the documents can be found. You can also bring recent financial statements and the contact information for your accountant and banker.
Then list insurance policies, including life, crop, property, and liability coverage. For life insurance and accounts with named beneficiaries, bring the most recent beneficiary information you can find. These details help your advisers see whether the financial arrangements match the family’s intentions. Illinois Extension includes liabilities, insurance policies, loans, and bank information in its recommended farm inventory.
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Bring Existing Estate Planning Documents
Collect any wills, trusts, powers of attorney, and other estate planning documents already in place—even if they were signed years ago. Tell your attorney about major changes since then, such as a marriage, divorce, death, new grandchild, land purchase, or change in business ownership.
Do not assume an old document is useless. Reviewing it may reveal what still reflects your wishes and what needs attention. It also allows the attorney to compare the plan on paper with the way farm assets are currently owned.
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Write Down Who Does What on the Farm
A transfer plan must account for the work that keeps the operation going. Who negotiates leases, talks to lenders, pays bills, markets crops, maintains equipment, and makes decisions when something goes wrong?
Make a brief list of current responsibilities, including work performed by family members and key employees. Then identify who could step into those roles if the owner had to stop working unexpectedly. Illinois Extension encourages farm families to document management roles and consider whether future operators have the interest and experience to take them on.
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Bring Your Goals, Even If the Family Has Not Agreed
Documents show what the family owns. They do not explain what the family wants.
Before the meeting, write down your priorities. Do you want one child to operate the farm? Do you hope the land will remain in the family? Do you need income during retirement? How do you want to provide for children who do not farm? Is there an employee or family member who understands the operation well enough to keep it running during a transition?
You do not need every answer yet. Your attorney can help you identify decisions that must be made and questions to discuss with your family. An honest conversation can also reveal whether the people you hope will take over actually want that responsibility.
Frequently Asked Questions
Do I need a current appraisal before my first meeting?
Usually, the better first step is to identify the assets and bring any valuations you already have. Your attorney can advise whether a formal appraisal is needed for the planning decisions you are considering.
What if I cannot find every document?
Make the appointment anyway. Bring what you have and a list of missing items. You can work with your attorney to decide which records to obtain first.
Should my children attend the first meeting?
That depends on your goals and what you are comfortable discussing. You may want an initial conversation with your attorney before deciding when or how to involve family members.
Start With What You Know
You do not have to solve the entire farm transition before seeking legal advice. A clear list of assets, agreements, responsibilities, and goals gives the conversation a useful starting point and helps uncover issues while there is still time to address them.
Rincker Law, PLLC helps Illinois farm families plan for the future of their land and businesses. To discuss your farm succession goals, call (217) 774-1373.
Legal Disclaimer: This article provides general information, not legal advice. The documents and planning steps appropriate for your farm depend on your circumstances.