TRANSFER THE FARM NOW OR LATER?

Problem: Is it better to start transferring the daily operation to the farm heir or focus on the farm estate plan first?

- Mark McLaughlin

My husband and I recently met with our adviser to discuss farm succession strategies. We thought we’d learn how to phase out of the farm operation in the next five to seven years so our farming son could buy our machinery and take over the daily management. However, the conversation quickly shifted toward our estate planning. Now, I’m confused on what farm succession entirely involves. I just know we don’t have a plan to gracefully exit the business, nor to keep the farm together when it goes to our three kids. It’s a lot to take in! Should we focus on moving the operating assets and day-to-day responsibilities to our son first? Or is it better to start on our farm estate plan?

— Submitted by email from L.L. 

Solution: