Topics

Many farmers, ranchers, and rural landowners have spent a lifetime building their business and caring for their property. Others are just starting out, wondering what their business will become. Regardless of their stage of life, farmers or landowners must consider the future..This chapter and video introduce the process of estate and succession planning.

The first technical step in estate or succession planning is taking inventory of all assets and debts. In addition to listing assets and their value, it is important to understand how those assets are owned. This chapter and video discuss the different ways property is owned and the impacts of those ownership types. Learners are equipped to complete a property inventory after reviewing this material.

There are two forms of estate succession when a person dies: intestate succession and testate succession. Intestate succession gives a decedent no control over the passing of the estate. Testate or planned succession, on the other hand, seeks to honor the decedent’s wishes and instructions.This chapter and video discuss the general rules for distribution of property at death.

The probate process is the procedure required by state law to transfer a decedent's assets at death. Although it is largely thought to be burdensome and time consuming, that is not always the case. This chapter reviews the probate process. 

Everyone needs a will, even if a will substitute is executed. This chapter reviews the technical requirements for creating a will, as well as some common provisions and considerations.

Trusts are important estate and succession planning tools. They can provide for the transfer and management of income and assets after disability, manage income and assets for the benefit of minors or the vulnerable, or ensure privacy of the distribution of assets at death. This chapter discusses the use of trusts, specifically focusing on the revocable living trust.

Anyone planning for the future must consider unexpected events. What will happen if I become disabled? Who will take care of my property and my medical needs? This chapter reviews several key estate planning documents (besides a will) that everyone should execute.

When developing an estate and succession plan, it is important to consider how taxes will impact the transfer of property. For a very small number of families, planning may be necessary to reduce estate and gift taxes and increase the wealth passed down to future generations. This chapter explains how the estate and gift tax works.

In the current environment, many estate and succession planning decisions are influenced not by estate or gift tax considerations, but by income tax consequences. This chapter discusses income tax considerations for the transition.

Selling assets, gifting assets, or holding them until you die all have different income tax consequences. This chapter reviews some income tax planning strategies, including the use of a like kind exchange, installment sales, charitable trusts, rental arrangements, and other options.

Estate and succession plans may include business entities to facilitate the transfer of the business before or after death. Entity planning should be a topic discussed with the estate and succession planning team. This video provides a general overview of different business entities and their uses.

Different business entities have different tax rules. These rules help determine which entity is best for certain purposes. This video reviews the general tax rules for partnerships, S corporations, and C corporations, and explains how an LLC can be taxed in any of these ways.

Business entities can be useful in a succession plan. This video discusses considerations for use of business entities in a farm estate and transition plan. 

Different goals require different planning strategies. This chapter discusses several strategies using business entities designed to achieve common succession planning goals. It also contrasts the use of a business entity with the use of a trust.