What is a Farm Succession Plan?
Farming succession, is the process of transferring ownership, management and operation of a farm from one generation to the next. This multifaceted transition involves the transfer of not only physical assets, such as land and equipment. But also, the knowledge and skills that define a family's agricultural legacy. Navigating farming succession requires careful planning, communication, and thoughtful consideration of financial, legal, and emotional impacts to ensure the seamless continuation of a farming enterprise.
What does the farm succession planning process involve?
The farm succession planning process at Orman Solicitors is a comprehensive and collaborative journey designed to ensure the seamless transition of your farming enterprise through the following:
Individual Family Member Meetings:
Our process begins with individual meetings with family members to understand their needs, aspirations, and perspectives on the succession process. This personalised approach is crucial to addressing the unique concerns and goals of each family member.
Enterprise Analysis:
We conduct a thorough analysis of the farming enterprise, assessing its strengths, weaknesses, opportunities, and threats. This strategic examination provides a holistic understanding of the business dynamics, laying the groundwork for informed decision-making.
Independent Valuation or Amount Agreed by parties.
Independent valuers can be engaged to determine the value of the farm as well as assets such as plant, equipment, and stock. The value of these items can also be agreed upon by all parties. The valuation figures or agreed amounts serve as a foundation for the equitable distribution and financial planning.
Financial Planning Meetings:
We facilitate meetings with your accountant and/or financial planner to delve into essential aspects like tax planning, investment planning, estate planning, and asset protection. This collaborative approach ensures that financial considerations are integrated seamlessly into the succession plan.
Family Workshops:
If necessary, we organise workshops involving family members to address issues, resolve conflicts, and collectively formulate a plan that aligns with the overarching goals of the family.
Documentation of the Farm Succession Plan:
Following comprehensive consultations, our expert team documents the succession plan. This involves capturing the goals of the family, outlining the assets involved, and considering the future needs of each family member.
Review and Agreement:
We bring all parties together to review the succession plan, ensuring that everyone is onboard and in agreement with the proposed strategy. This step is crucial for fostering a shared understanding and commitment.
Signing Off the Farm Succession Plan:
Once agreement is reached, the succession plan is formally signed off by all involved parties, solidifying the commitment to its implementation.
Implementation Phase:
With the farm succession plan signed off, we move into the implementation phase. This may involve actions such as transferring assets on the farm, winding up or establishing trusts, and drafting new Wills, Power of Attorney, Enduring Guardian, Partnership Agreements, or new Companies.
Maggie Orman has dealt with many farming succession matters over her 23 years of experience. Coming from an extensive farming background, Maggie is passionate about succession planning and its processes. If you would like to have a complimentary 15 minute consultation to discuss whether a Farm Succession Plan is appropriate for your family give us a call on 1300 676 267 to make an appointment.
Disclaimer: The content presented in this article is offered for informational purposes and should not be construed as legal advice or a substitute for professional guidance. If you have questions or require legal assistance, we strongly recommend consulting with a Solicitor to address your individual circumstances.