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The Benefits of a Plan

August 10, 2012


Accomplishing goals requires some structure. Planning for ownership transition and the future of your family farm is no different. A comprehensive succession plan will allow you to maintain your financial security while the operation provides for the income needs of a new owner/manager and each family working in and dependent on the operation.

 

Beyond the financial considerations, a comprehensive plan also ensures the next generation is well-prepared for a leadership role. Let's not forget about the estate tax; a complete plan always includes provisions to satisfy, eliminate or mitigate the tax.

 

Additional benefits of a comprehensive plan for succession include:

  • Ensuring a smooth management/ownership transition, so that all owners who are active in the operation are well-informed and the next generation is prepared for the opportunity.
  • Fortifying operational strength by encouraging each member of the management team, regardless of generational order, to participate in a professional development program.
  • Making certain that no matter what happens, including premature death, disability or dissolution, the operation can continue and there's adequate capital to weather the challenges of adversity.
  • Providing a lasting legacy, a testament to your efforts and an example for future generations to follow.

A comprehensive succession plan is merely a binder full of information until you bring it to life. The process of planning combined with implementing the various elements along the way is a big step toward peace of mind, control through growth and a legacy of success.