A comprehensive approach to:
Succession Planning for Farming Professionals
and Family Business Owners
Succession planning prepares the business, its owner, and the owner’s family for the day when the owner no longer participates in the operation.
A comprehensive approach to:
Succession Planning for Farming Professionals
and Family Business Owners
How it works
Legacy’s Comprehensive Succession Solution
Financial Security
The first step in the planning process is providing financial security for an owner and their families. The process begins with a thorough understanding of an owner’s goals for retirement, continuing business success, and family involvement. Owners tell us they don’t want to retire; however, they do want options to offload some of the responsibilities of day-to-day management. Providing financial security begins with a solid financial plan, which includes managing risks, eliminating personal debt, and establishing an investment portfolio. The entire process is designed to gain peace of mind and maintain the lifestyle an owner desires.
Ownership Transition
The second step in the planning process is designing a smooth and effective ownership transition. Mitigating risk and protecting an owner’s estate is paramount in the process. Owners want an ownership strategy that doesn’t create unnecessary risk and allows a new owner to gain equity. An effective transition will protect assets, mitigate taxes, and minimize risk. The process may involve financing options, entity restructure, and buy-sell agreements. This step is designed to efficiently manage the ownership transition to address the needs of the owner, wants of the family, and the demands of the operation.
Leadership Structure
The third step in the planning process is establishing a leadership structure that allows new and existing owners to manage the operation through the transition. Most owners want a well-prepared next generation to take an active role in the operation. They want to gradually cede responsibility and mentor the next generation into a leadership position. Succession is easier with well-defined roles and responsibilities. This phase will focus on establishing a structure that ensures management decisions are made only by active and involved owners. It will safeguard the operation from the intentions of family members who are inactive and not dependent on the operation.
Estate Plan
The fourth step in the planning process is minimizing exposure to the estate tax, mitigating transfer costs, and providing lasting security for the family. As a rule, owners want to leave their loved ones secure and know their business will continue. They want to mitigate costs and minimize taxes. They want to benefit the family and worthy causes. Estate planning strategies are complex and confusing. They involve legal terms, financial concepts, and tax terminology. This step in the process will provide equitable distributions for their children and financial security for their loved ones. Estate tax provisions will ensure an owner’s wishes are achieved.
Frequently Asked Questions
If you can't answer YES to any of the above questions, you may want to reach out to Kevin for a FREE CONSULTATION.
Schedule nowWill your farm, ranch, or family business remain in the family for future generations?
Will ownership transition smoothly to the next generation and provide equitable benefits for all of your children?
Will your family operation provide financial security for you and lasting benefits for your dependents?
Will the estate tax and other transfer obligations force your family to sell the land to pay for their inheritance?
What Kevin can help you with
Our Services
PLan for the future
Who We Serve
Farmers
We’re usually approached by senior or second-generation farming professionals who are looking for advice on a question[s] somehow related to planning for succession. Those farming professionals want to continue a legacy of multigenerational success. They’re often confused about the planning process and overwhelmed by the many issues that need to be addressed in planning for succession.
Ranchers
The ranchers we’ve worked with are fiercely independent and stubborn for results. They know long-term success is difficult and rare. They know real answers to their succession planning concerns may involve the tax, legal, and financial disciplines. But most don’t know who can help or where to get answers. When they contact Legacy by Design, it’s usually about protecting their interest and exercising some control over the operation, while offloading responsibilities to the next generation.
Food Processors
For the food processors, we work with the operation is more than a business. Yes, it’s the source of income and growing equity. It’s also a part of the owner’s family and a great source of pride. We often of an owner who will spend more time at work than with the family. As a labor of love and testament to realizing the American dream, owners want to see the business continue and acknowledge great pride in having one of their children carry the torch. But they know continuing success is difficult and very rare.
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