Passing It On: An Estate Planning Resource for Farmers

and Ranchers

Cole EhmkeExtension Specialist

Department of Agricultural and Applied Economics

17 April 2007Phoenix, AZ

National ExtensionRisk Management Conference

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Observed Need

Development objectives:• show how to deal with some of the difficult

personal issues• provide exercises and checksheets to set

goals and move forward• provide background on the primary tools

used to implement a plan• list Wyoming resources to assist in the

process.

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Development

Development Team (organization and content) – Lucy Pauley and Carolyn Paseneaux, Wyoming

Department of Agriculture Mediation– Alan Schroeder and Cole Ehmke, University of

Wyoming Extension

Partners (content)– Legal and content experts, estate planning advisors,

insurance representatives– Initially potential partners were indifferent; now

enthusiastic

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Estate Planning Process

1. Discover Expectations: communicate goals, issues, concerns, etc. of all parties

2. Take Stock: Personal net worth statement

3. Examine Options/Tools

4. Agree to the Plan

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Baseline Components• Someone has to initiate the dialogue • Develop shared goals

– Outline your interest first, then share (don’t assume)

– Be fair, inclusive and over-communicate• Centralize information• Assess tools and visit professionals (after

goals are set)• Get it done (agree to the plan, and

implement it)

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ContentChapter 1 IntroductionChapter 2 Success StoriesChapter 3 Establishing an Estate PlanChapter 4 Developing Common GoalsChapter 5 Taking Stock of the EstateChapter 6 Succession PlanningChapter 7 ToolsChapter 8 Coming to an AgreementChapter 9 Resources

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Chapter 1

Introduction by Lucy Pauley

- Introduction to estate planning

- Common problems

- Project objectives

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Estate PlanningDefining the Term

It is the process of accumulating, preserving and distributing assets to achieve the financial goals of people during their lifetimes, and to provide for their heirs according to the estate owner’s wishes at death.

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Chapter 2

Success Stories

• Story 1: Harding & Kirkbride Livestock Co., Meriden, WY

• Story 2: The Sims Ranch, McFadden, WY

• Story 3: Johnsen Farm, New Jersey

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Chapter 3Establishing an Estate Plan for Your

Family’s Farm or Ranch Business – Initiating the Dialogue by Alan Schroeder

• Material is mediation based

• Addresses why these conversations are difficult

• Guides the initiator and provides process and three approaches

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Chapter 4

Developing Common Goals by Cole Ehmke• Emphasizes the importance of shared

goals – Outline your interest first, then share (don’t

assume)• Lists typical goals and provides

worksheets to rank

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Chapter 5

Taking Stock of the Estate by Cole Ehmke

Addresses three parts of taking stock of an estate:– Identify assets and liabilities in the estate – Locate papers and documentation– Establish a personal net worth statement

Excel spreadsheet is available (online)

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Chapter 6

Succession Planning

• Transfer of management (and choosing a successor)

• Transfer of ownership

• Transfer of labor

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Chapter 7

Tools by assorted professionals• Wills• Probate• What Everyone Should Know About Trusts• Estate Planning and Life Insurance• Gifting• Effects of Title Ownership of Property• Annuities• The Federal Estate Tax• Conservation Easements• Advanced Health Care Directives• Glossary

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Chapter 8Coming to a Good Agreement

Regarding an Estate Plan for your Family’s Farm or Ranch by Alan Schroeder

• Mediation based• Guides how to conduct a family meeting(s)

on the final estate plan• Provides three possible approaches• Outlines a specific negotiation technique

which addresses some of the concerns raised by other methods.

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Chapter 9

Resources• Lists professional organizations (specific to

Wyoming)• Lists other estate planning publications (both

general and specific to agriculture)

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Distribution

• Hard Copy (mail order for $10)

• Electronic (free): http://ces.uwyo.edu/passingiton.asp

• Workshops– 10 winter workshops; reached 142

farmers/ranchers– 2 hours each, with legal professional

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Future Work

Expand content– Non titled (personal) property distribution– Philanthropy– Funeral planning– Retirement planning

Assess success– Survey of users

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For additional information on Passing It On, personal resource management and agricultural diversification, contact

Cole EhmkeDepartment of Agricultural and Applied Economics

University of Wyoming, Laramie, WY

(307) 766-3782

cehmke@uwyo.edu

ces.uwyo.edu/passingiton.asp