Family farms require a succession plan
By planning early for succession, farm owners have the chance to minimize debt, put plans in place in case of an unexpected death or accident, and pass on the knowledge necessary so the next generation can successfully run the business.
To begin the succession process, farm owners need to review depreciation schedules, go over life insurance policies, and check what social security benefits are available. People involved in succession planning also need to get copies of wills or trusts. If family members haven’t written a will, they need to do it.
“One thing that we find is that people don’t have wills, and if you have young children, it’s really important,” said Tracy Garofalo, accountant with PFB Members’ Service Corporation, in the Penn State webinar “Plan for Now, Prepare for the Future: Transferring/Succession Planning for the Future.”