Developing thorough and active strategies when transitioning properties, businesses and farms through wills is an important and complex process to undergo before departing into the hereafter. Val Panko of the FCC gave a presentation on the assorted matters people should respect and discuss when preparing their wills on December 4 at the Canalta Hotel. Her report, Ag Transition – The Rest of the Story, drew in an ample-sized crowed of participants who wanted a better understanding of the process involved with creating wills.
“A lot of our customers struggle with succession planning,” Panko said before introducing her topic. Then Panko said most transition stories focus on two things; taxes on businesses and life insurance. However, the agriculture transition specialist outlined more subjects to deliberate over when drawing up an effective transition plan. “There’s more to this pie than those two pieces,” Panko clarified.
The transition specialist gave a list of additional subjects to consider as people organized their wills. Taxes, business structure planning, life insurance and investment preparations were just a few of the additional points Panko said people should remember. Also, for efficient transitions, accurate and direct communications with the family are always necessary.
Of most importance, the specific roles for every family member should be made clear prior to the transition period. “Communication is important. Communication is a huge point to a lot of things,” Panko highlighted, adding “Your transition will go smoothly, if everybody knows who is doing what.” Further, before transitions can begin, the successors should know what’s expected of them. “Sometimes, it makes sense to train the successors,” she said. Moreover, Panko suggested transitions specific to ag producers should provide methods for dealing with nonfarming siblings and children. Certainly, family clashes have to be managed long before transitions occur. “Something unresolved within the family or farm management should be resolved early,” Panko emphasized. “An unaddressed conflict is a recipe for disaster.”
"Effective succession plans must be personalized. Your farm is unique and so is your transition. Sit down and determine what your succession should look like,” she recommended. “Don’t focus too much on how to transition. Rather, worry about what your transition plan will look like. You want something specifically customized for your operation.”
Panko advised her audience to consult financial planners before drawing out transition plans for their estates. “Bring in the experts. Make sure you’re getting the best possible advice.” For Panko, advice from financial and legal experts is crucial when devising operative transition plans. “You are the expert on the destination, but not necessarily on the best way to get there,” she explained.
Panko’s presentation was part of the Ag Knowledge series. Craig Macfie from Stark and Marsh and Kim Ford of Lewans and Ford also gave addresses at the well-attended meeting in the Canalta on Wednesday afternoon. There was also a door prize draw. Claudette Palmier, Senior Manager at Stark and Marsh CPA LLP, issued the closing comments.
