land as your legacy®farmher.zenfolio.com/iamfarmher_deedee.pdf · poor succession rates § lack of...
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SecondGeneration ThirdGeneration FourthGeneration
Despite the many perceived advantages of family businesses, it is estimated that only:
*Hannah Shaw Grove & Russ Alan Prince, What, No Succession Plan?, TR.&EST., Sept. 2004, at 69, 69 (citing the estimate byJoseph Astrachan, editor of Family Business Review).
Poor succession rates
§ Lack of “human relationship management”*
§ Lack of communication
§ Lack of clarity and understanding
*JournalofExtension,RobertJ.Fetsch,ExtensionSpecialist,HumanDevelopment&FamilyStudies,ColoradoStateUniversityCooperativeExtension,FortCollins,Colorado,www.joe.org
6
Poor succession rates
Family members are reluctant to begin the process of open communication:
§ They fear change
§ They associate communication with conflict
§ They see a threat to their control of the enterprise
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Need for farm and ranch
transition planning
§ Transition planning can help with:
§ Preserving a legacy
§ Safeguarding the value of the operation
§ Setting up an orderly transition of ownership
§ Identifying a successor(s) and providing him/her the education and training they will
need
§ Turning non-liquid assets into cash to cover
taxes and expenses§ Identifying and managing risks
9
Who has a plan?
§ Everyone has a transition plan in place.
§ The state you live in has enacted laws
governing most aspects of estate planning and probate, lack of creating your own plan
allows your state laws to determine how your legacy will be carried out.
§ What plan do you want? The plan your state
created for you or the plan that you develop based on your own set of circumstances
and family dynamics?
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