Free Farm Succession Workshops in December
The Nebraska Rural Response Hotline, together with the Nebraska Department of Agriculture Beginning Farm Tax Credit and Negotiations Programs, the Farm & Ranch Project of Legal Aid of Nebraska, and the Nebraska Farmers Union Foundation are sponsoring free four-hour succession workshops for farm and ranch families. The educational workshop will aim to provide reliable information that may assist farm and ranch families in forming business succession plans or in reviewing their existing plans.
There are numerous tools, such as wills, trusts, and powers of attorney that families use in farm and ranch succession and estate planning. One tool that has become increasingly popular is the business entity, such as a corporation or limited liability company. One reason for its popularity is to keep land in the family, over time, while dividing ownership of it among family members. We will take a look at the use of entities in farm and ranch succession planning: what they can offer and how they are used. We will also look at the experiences of other farm and ranch families with the use of entities, as detailed in court decisions to help guide us in our own estate and succession plans. By necessity, this discussion will also involve a brief overview of estate planning.
We will then take a look at some of the financial and management issues that often arise in farm business succession: Who should participate in the planning process? Will the business continue into the next generation? Are there key concerns or principles that drive planning, such as equal treatment of heirs, liability risks, divorce, or compensating on-farm contributions? Are the tools in place to address an untimely death or divorce? Has the economic feasibility of the succession plan been fully considered?
Finally, we will discuss taxes. In particular, we will look at recent changes in Nebraska’s inheritance tax, review the federal transfer tax (estate and gift) and discuss the importance of time-of-death transfers in tax planning.
Joe Hawbaker, an agricultural law attorney, will discuss succession tools, use of entities and taxes. Dave Goeller, recently retired extension farm transition specialist, will discuss financial and management issues in the family context.
- Dec. 7 — 10 a.m.-2 p.m. Atkinson Public Library, 210 W. State St., Atkinson, Nebraska. Lunch sponsored by Tri-County Bank.
- Dec. 8 — 10 a.m.-2 p.m. Old Brick Palace, 201 West O'Neill Ave., Greeley, Nebraska. Lunch sponsored by Henderson State Bank.
To register and for questions, call the Rural Response Hotline at 1-800-464-0258 or visit the website.