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Ranch succession planning can be a very difficult and sensitive issue for families. The ranch's land base typically represents the largest portion of the family's estate and may be viewed by the parents as a source of retirement income. There are often multiple heirs -- all of whom may wish to ranch, or just a few, or none. In-laws may have different opinions about the future of the ranch than the family members who consider it home or rely on it for income. Frequently, the ranch and its assets are not large enough to accommodate the interests of everyone concerned. The complexities of these issues mean that ranching families can be reluctant to start a succession plan, often until it is too late. Ranches and families can be torn apart after a death as all of these issues come to the forefront and decisions need to be made quickly. Most ranch succession planning obstacles can be addressed successfully if families start planning early and are aware of all the available tools. How
the Program Works There is a lot of great information about succession and estate planning available for ranch families, but unfortunately not much direction is available to actually get the process started. Often, this is the most difficult part! "Passing It On" fills this gap. Through the "Passing it On" Workbook, SALTS hopes to help ranch families to: 1) Identify the objectives of your succession/estate plan Often, the most important part of succession and estate planning is asking the right questions up front! These questions are ones only you and your family can answer. It may take a while to come up with some of the answers, and it usually means involving the whole family at some point. You must make decisions about what you want to happen, what you don't want to happen, and when you want things to happen. 2) Improve your understanding of the options available to achieve your objectives The workbook will introduce you to succession planning strategies, taking into account possible business structures, forms of ownership, taxation, rollovers and exemptions available to ranch families, and many other issues. One of the principal tools currently used for the long-term protection of rangelands is the conservation easement. This concept and the associated tax advantages will be fully explained so you can determine if it might play a role in your planning. 3) Create a rough draft of your plan prior to meeting with your accountant, lawyer and other planning professionals Getting the initial goals and objectives of your succession and estate plan down on paper before seeing your planning professionals will save you time and money. It is critical, however, to get their professional input so they can fully develop the opportunities and identify the obstacles specific to achieving your objectives.
Succession and estate planning is not an event … it is a process! A Guide to Family Ranch, Succession and Estate Planning, the workbook that accompanies the Passing It On program, allows ranch families to work through that process at a pace that is right for them. A lot of succession and estate planning involves family discussions, jotting notes on objectives and re-visiting the plan. The workbook is an informative and approachable tool for doing just that. Laid out in a binder format, the Workbook is designed to be used over a period of time (years, if necessary) to help you identify your goals and, with help from your advisors, build a plan that will achieve them.
The first step is to contact us. We will come to your ranch, explain in more detail what SALTS is and how our "Passing it On" program can help. Anything you discuss will be held in strict confidence.
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