Most farmers dream of passing the family farm down through the generations and keeping it in the family. Creating an estate plan can make sure the farm doesn’t end up with someone else.
AARP Oklahoma State Director Sean Voskuhl said that keeping the farm in the family is hard enough, but it’s even more challenging if you don?t plan for the future.
?Research shows folks simply procrastinate, don?t think their estate is big enough, or just simply don?t know how to create a will or estate plan,” Voskuhl said. “Truth is, anyone can create an estate plan, and the easiest way to do it is to find a local expert who knows the laws in your state. Doing so can save your family and farm from a drawn out, complicated process, after you are gone.?
Voskuhl said there are three basic elements of estate planning farmers should consider.
?First, develop and maintain a succession plan for ownership and management of the farm,” Voskuhl said. “Also, consider retirement plan accounts and life insurance needs of the farm as a closely held business. And, consider premarital agreements and protection of interests in the farm.?
Voskuhl added that you need more than just a will to be completely safe.
?A will directs what happens after a person dies and makes life simpler for heirs, but two other documents are just as important,” Voskuhl said. “One is a health care directive, which appoints someone to make medical decisions for you if you’re unable, and which outlines the medical care you do or don’t want. The other document is a durable power of attorney, which appoints someone to make financial decisions on your behalf if you’re incapacitated.?
To learn more, visit aarp.org.
