By MEGGIE I. FOSTER
Assistant Editor PLYMOUTH, Ind. — Although the thought of getting family members motivated to sit down and discuss the future of “grandpa’s farm” may seem overwhelming, it’s best to take it one step at a time, according to Purdue University Extension estate planning coordinator Janet Bechman.
During the Midwest Women in Agriculture conference on Feb. 5 in Plymouth, Ind., Bechman laid out six simple steps to getting family members ready to make decisions in the estate planning process.
“It doesn’t have to be overwhelming,” she said, encouraging farm women to initiate the conversation because “it allows you to arrange your affairs according to your wishes.” “Think of it as that huge elephant that small bite after small bite, it would be gone. Just take it one bite at a time.”
In the first and most critical step, Bechman said to initiate the discussion. And whether there may be no right or wrong way to begin this process, “it will at least get it rolling. Basically, you need to discuss your wishes, be clear about your concerns, while keeping others feelings in mind,” she said, adding that the best time to initiate discussion is not during holidays or birthdays, but when the family is together and relaxed.
“We all have different concerns, be sure to come to the table with an open mind and be willing to listen. Once you’ve initiated the conversation, you’ll feel a huge weight lifted off your shoulders.”
She emphasized the importance of bringing all the family members to the table.
“One of the 10 biggest ways to sabotage estate planning and tear a family apart is to keep information from certain family members or not include them in the discussion at all,” she added. “I think we’ve all heard those stories.”
Secondly, Bechman encouraged the group of farm ladies to take stock and develop the what-if document. The what-if document would include the family members, the important papers, bank accounts and corresponding numbers, insurance information, assets, liabilities, gifts given, notes, mortgages, land and property.
“This step generally takes a while,” she added.
Next and thirdly, Bechman said to “determine your objectives. This is a very important step. Determine when and how you want to pass the farm and properties on to the next generation.”
The fourth step, she described as the point in which the family would choose an advisor, whether that be an attorney, accountant or financial planner. “I would encourage you to find someone you’re comfortable with, or an individual that is already working with someone you know and trust,” Bechman explained.
“This is a key step after you develop your objectives – to then share those objectives with your advisor. Make sure to ask their background, experience level and discuss a fee arrangement.
“Step four is about choosing a professional who you want to represent you and carry out your objectives and wishes,” she added.
In the next step, Bechman said to consider the alternatives and the options.
For instance, “there are several ways to accomplish your objectives, such as a will, trust, corporation, living will, power of attorney, etc.
“Do your research, develop an understanding of all of your options and the differences among them. The more questions you ask your advisor, the better.”
In the final step of the estate planning process, Bechman said to review and modify the plan accordingly.
“Have you completed your checklist, have it been two or three years since you made plans, has there been any major changes in the family situation,” she asked.
Bechman shared the most common mistakes families make during this process as: procrastinating, having the “I’m-taking-it-with-me” attitude and failing to disclose the location of the will.
For more detials and worksheets, Bechman encouraged farm families to visit www.extension.purdue.edu/ estateplanning or www.extension.purdue.edu/farm transfer or www.extension.purdue.edu/farmriskmgt |
