CALF_News_August_September_2021

32 CALF News • August | September 2021 • www.calfnews.net The Essential Conversation STEP 4 Sit down with all the people you feel need to be involved. At the very least, your children. Maybe you have hired hands who are involved in your plan. Maybe you have grown grandkids. Sit down at the kitchen table and have the discussion. If you feel like it’s going to be a volatile conversation, rent a small event space or the back room of a restaurant so the feelings of animosity aren’t hap- pening in your home to be remembered every time that person comes in. Clear the air. Be honest. Explain why you did what you did. Most level-headed adults want to do the right thing. They want to follow the wishes of the people they respect. STEP 5 Enjoy. Breathe a sigh of relief that the plan is done and everyone knows. As you add more to your legacy, make sure it gets added to your plan. Look at your plan every few years and make sure nothing has changed.  The conversation you don’t want to have. The things that have to be thought about. The steps you have to take to make it right. The money that is involved. The idea that you are going to be giving up control. Wondering if they’ll take care of it the way you want? By Kelsey Pagel Contributing Editor T hese are just a few of the things you’ll have to think through when starting your succession plan. It’s most likely not going to be fun, but it should be done. You have worked your entire life to build what you have. You have spent hours sweating. You have sacrificed vacations, attending events and relax- ing to have what you have. You will do everything you can to protect it, but do you have a plan in place for when you’re ready to retire or you pass away? My parents sat my two older sisters, our spouses and me down to tell us exactly what we are set to inherit from them. They told us who their powers of attorney and medical powers of attorney are. They told us why they chose how they did. They explained what their wishes were. They told us the most important thing was that we didn’t let land and agriculture split our sisterhood up. They gave us a chance to ask ques- tions. Was it a fun conversation to have? Nope. But now they know we know. And that’s important. STEP 1 List the important things that you want passed on. Don’t necessarily think about to whom yet. Just list the items (land, equipment, family heirlooms, jewelry, house, etc.). STEP 2 Fair is not always equal and equal isn’t always fair. Now is the time to think about whether your assets are going to children. (If so, has one been on the farm and others not, so is the farming child getting more?) Should you think about life insurance for the non-farming chil- dren. If none of the kids came home, are you splitting it equally between them? Is there a farmer in your area whom you’d like to work out a deal with so they can expand? Are you selling your assets to fund your retirement? This is probably the hardest step. It’s hard to think about letting go of control and passing away. You have done a lot of hard things in your life. You have made a lot of hard decisions. Make sure this is one you make. Don’t put the pressure on your children to wonder why you did what you did or try to figure out what you want. Just put it on paper. STEP 3 Find a lawyer you are comfortable with. This might take more than one meeting. Ask peer farmers who they found to be reputable and good to work with. Ask at the Extension office, a trusted financial advisor or your accoun- tant if they have a lawyer they recom- mend. Ask around and be comfortable with your choice. The right lawyer will talk you through the best way to make your plan happen. It’s going to cost some money to have it done right.