Transition and Succession Planning
Having an estate plan is essential for determining how farm assets will be distributed upon your passing or incapacity. Penn State Extension provides owners with educational resources and advice on farm estate and farm succession planning. Information on planning for final arrangements can be accessed, as well.
Farm Estate Planning
Estate planning should be an important consideration for anyone who owns a property. A properly prepared farm estate plan can provide owners with peace of mind and ensure the estate is passed on to the chosen beneficiaries as tax-efficiently as possible.
To get started with estate planning, farm owners should establish their business and personal goals. Common goals include providing retirement income for the family, securing an income stream for dependents, and minimizing estate taxes. Knowing the estate’s value is another important step. To come up with an estimate of your net worth, list your assets and liabilities.
An estate plan is more than a will, and there are various tools used to reflect the individual’s goals on distributing their property, as well as outline plans for continuing the family farm. Tools commonly employed in farm estate planning include using tax-free gifts, titling property, setting up a trust, and purchasing life insurance.
Join the Family Farm and Business Succession Planning online course to learn more about estate planning, establishing plans that are good for both family relations and the business, and avoiding unnecessary taxes and costs. Business owners can further benefit from Penn State Extension’s Business Exit Strategy course. This course will help you make better financial and personal decisions when leaving your business, as well as learn how to begin the sale or liquidation of a business.
Farm Succession and Transition
When faced with a farm ownership change, both current and future owners should assess the business’ financial position and legal structure. As farm succession can be challenging, it is generally advised to consult a financial planner and an attorney. It’s worth noting that an Extension Educator can also provide assistance during the farm transition process by facilitating family communications, financial decision making, and technical training for new farm managers.
The United States Department of Agriculture offers an array of farm transitioning resources and programs, including guaranteed loans and land contract guarantees. The loans can be utilized to purchase farmland or new equipment, while the land contract can be used to facilitate land transitions by financially backing both the purchaser and the seller.
Comprehensive information on farm succession planning can be accessed via Penn State Extension resources, as well. Farm owners can find advice and recommendations on planning for final arrangements, including transferring property, organizing records, and documenting preferences. An in-person workshop on farm transition planning and important factors to consider is available.
- Articles
New Long Term Care Guide Available for PA Farm Families
Managing Long Term Care costs can be a financial burden on farm families. PA Farm Link has published a guide to help PA families make asset purchases and transfer decisions. - Articles
Fund Your Farm Planning with PA's Farm Vitality Grant Program
Are you ready to invest in planning for your farm? The Pennsylvania Department of Agriculture’s Farm Vitality Grant Program will reimburse 75% of costs up to $7,500. - Webinars
$20.00
Transitioning Land to a New Generation: Getting Started
When 03/18/2024Length 2 hoursEvent Format On-Demand | RecordedGain insights from leading experts on navigating land and business transfer complexities for new and transitioning farmers in this dynamic 2-hour on-demand webinar. - Workshops
Setting the Stage for Succession: Retirement Planning
Length 6 hoursExplore your retirement vision, create a budget, and grasp essential knowledge about Social Security and Medicare at this informative workshop. - Articles
Farm Transition
Who will get the farm? A guide to small-farm planning for the next generation. - Articles
What's Your Exit Strategy?
Transition and succession planning options to consider for the future of your business. - Online Courses
$49.00
Business Exit Strategy
Sections 3Length 1 hourAs you begin the business transition process, learn steps to take to make financial and personal decisions, including to sell or liquidate your business. - News
Contingency Plans for Dairy Farms: A Tool in a Crisis
Date Posted 4/3/2020The dairy industry is currently facing a situation that calls for you to have a contingency plan for your farm. - Articles
Estate Planning for Pennsylvania Farm Families
It's time to get a dialogue started with family to determine a strategy for transferring farm assets that can help minimize stress and the potential tax burdens on your heirs. - Online Courses
$59.00
Business Transitions: Family Farm and Business Succession Planning
Sections 8Length 6 hoursLearn what to consider and how to communicate about succession, retirement, and estate planning; property transfers; and avoiding unnecessary taxes and costs.