Leave a Legacy
Kevin Spafford is Farm Journal’s succession planning expert for the Farm Journal Legacy Project. He hosts the nationally-televised ‘Leave a Legacy’ TV, facilitates an ongoing series of workshops for farm families across the U.S., and is the author of Legacy by Design: Succession Planning for Agribusiness Owners.
Transfers to Children
Sep 26, 2012
From Legacy Moment (09/21/2012).
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Each family's situation is unique. There are a number of factors most owners need to consider when trying to equitably divide the farm or agribusiness among several children. Those factors are the basis for dividing ownership and other assets, which properties/assets each will receive, how much and when. Below are a few of the questions you, as the owner or as a son or daughter active in the operation, may wrestle with.
1. Will a current transfer of ownership to the active children create conflict among siblings if the inactive children do not receive an equitable share of the owner's wealth until after his death?
2. If there are multiple children who are active in the business, are they capable of working harmoniously with each other?
3. Are the inactive children comfortable with receiving no interest in the owner's business?
News & Resources for You:
This worksheet may help you sort through the conundrum of "fair versus equal."
Photo courtesy of USDA NRCS.