Passing It On: An Estate Planning Resource for Farmers and Ranchers

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Passing It On An Estate Planning Resource for
Farmers and Ranchers

• Cole Ehmke
• Extension Specialist
• Department of Agricultural and Applied Economics

National Extension Risk Management Conference
17 April 2007 Phoenix, AZ
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Observed Need

• Development objectives
• show how to deal with some of the difficult
  personal issues
• provide exercises and checksheets to set goals
  and move forward
• provide background on the primary tools used to
  implement a plan
• list Wyoming resources to assist in the process.

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Development

• Development Team (organization and content)
• Lucy Pauley and Carolyn Paseneaux, Wyoming
  Department of Agriculture Mediation
• Alan Schroeder and Cole Ehmke, University of
  Wyoming Extension
• Partners (content)
• Legal and content experts, estate planning
  advisors, insurance representatives
• Initially potential partners were indifferent
  now enthusiastic

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Estate Planning Process

• Discover Expectations communicate goals, issues,
  concerns, etc. of all parties
• Take Stock Personal net worth statement
• Examine Options/Tools
• Agree to the Plan

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Baseline Components

• Someone has to initiate the dialogue
• Develop shared goals
• Outline your interest first, then share (dont
  assume)
• Be fair, inclusive and over-communicate
• Centralize information
• Assess tools and visit professionals (after goals
  are set)
• Get it done (agree to the plan, and implement it)

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Content

• Chapter 1 Introduction
• Chapter 2 Success Stories
• Chapter 3 Establishing an Estate Plan
• Chapter 4 Developing Common Goals
• Chapter 5 Taking Stock of the Estate
• Chapter 6 Succession Planning
• Chapter 7 Tools
• Chapter 8 Coming to an Agreement
• Chapter 9 Resources

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Chapter 1

• Introduction by Lucy Pauley
• Introduction to estate planning
• Common problems
• Project objectives

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Estate PlanningDefining the Term

• It is the process of accumulating, preserving and
  distributing assets to achieve the financial
  goals of people during their lifetimes, and to
  provide for their heirs according to the estate
  owners wishes at death.

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Chapter 2

• Success Stories
• Story 1 Harding Kirkbride Livestock Co.,
  Meriden, WY
• Story 2 The Sims Ranch, McFadden, WY
• Story 3 Johnsen Farm, New Jersey

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Chapter 3

• Establishing an Estate Plan for Your Familys
  Farm or Ranch Business Initiating the Dialogue
  by Alan Schroeder
• Material is mediation based
• Addresses why these conversations are difficult
• Guides the initiator and provides process and
  three approaches

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Chapter 4

• Developing Common Goals by Cole Ehmke
• Emphasizes the importance of shared goals
• Outline your interest first, then share (dont
  assume)
• Lists typical goals and provides worksheets to
  rank

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Chapter 5

• Taking Stock of the Estate by Cole Ehmke
• Addresses three parts of taking stock of an
  estate
• Identify assets and liabilities in the estate
• Locate papers and documentation
• Establish a personal net worth statement
• Excel spreadsheet is available (online)

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Chapter 6

• Succession Planning
• Transfer of management (and choosing a successor)
• Transfer of ownership
• Transfer of labor

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Chapter 7

• Tools by assorted professionals
• Wills
• Probate
• What Everyone Should Know About Trusts
• Estate Planning and Life Insurance
• Gifting
• Effects of Title Ownership of Property
• Annuities
• The Federal Estate Tax
• Conservation Easements
• Advanced Health Care Directives
• Glossary

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Chapter 8

• Coming to a Good Agreement Regarding an Estate
  Plan for your Familys Farm or Ranch by Alan
  Schroeder
• Mediation based
• Guides how to conduct a family meeting(s) on the
  final estate plan
• Provides three possible approaches
• Outlines a specific negotiation technique which
  addresses some of the concerns raised by other
  methods.

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Chapter 9

• Resources
• Lists professional organizations (specific to
  Wyoming)
• Lists other estate planning publications (both
  general and specific to agriculture)

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Distribution

• Hard Copy (mail order for 10)
• Electronic (free) http//ces.uwyo.edu/passingiton
  .asp
• Workshops
• 10 winter workshops reached 142 farmers/ranchers
• 2 hours each, with legal professional

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Future Work

• Expand content
• Non titled (personal) property distribution
• Philanthropy
• Funeral planning
• Retirement planning
• Assess success
• Survey of users

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• For additional information on Passing It On,
  personal resource management and agricultural
  diversification, contact
• Cole Ehmke
• Department of Agricultural and Applied Economics
• University of Wyoming, Laramie, WY
• [phone]
• cehmke_at_uwyo.edu
• ces.uwyo.edu/passingiton.asp