I will be taking over the family farm. Should I be setting up a new business?
Whether a farming operation or other type of business, our attorneys generally recommend that you limit your potential liability by running the business through a separate legal entity such as a limited liability company or corporation. Which one of those is right for you depends on the circumstances, such as whether there will be multiple owners, the size of the operation, and income potential. The upfront costs of good legal and tax advice will reap benefits in the long run. Consult an agriculture attorney to discuss the details of your specific circumstances to see what options are available to you.
I have several children, but only some of my children work on our family farm. Can I structure a succession plan treat my children equally while still ensuring my farming children get to farm?
Developing a succession plan is a lengthy process, and it can become more complicated when there are children with different levels of involvement with the family farm. However, it is entirely possible to structure a succession plan to pass your farm to the farming children while treating every child equitably. Our attorneys can tailor a plan to meet your specific needs, whether that be structuring a limited liability company to allow non-farming children to have passive ownership while giving decision-making authority to the farming children or drafting a trust with right of first refusal provisions for farming children to buy agricultural land and equipment first. Creating the best succession plan depends on many factors and is unique to each family. Consulting with an experienced agricultural attorney and estate planner will help ensure that you have all the right documentation to ensure a smooth transition process.