This powerpoint presentation was used to speak to Indiana Master Cattlemen Class. It discusses estate planning, business planning and succession planning.

1. Farm Estate and Succession
Planning
Indiana Master Cattleman Class
November 28, 2017
By Cari B. Rincker, Esq.

2. Who I Am
• Grew up on a beef cattle
farm in Shelbyville, Illinois
– Advanced degrees in
animal science
• Past-Chair of the ABA,
General Practice, Solo &
Small Firm Division’s
Agriculture Law
Committee
• Client bases ranges from
farmers, food
entrepreneurs to small to
mid-size agri-businesses

3. Overview
Different
Processes
•Estate Planning
•Business Planning
•Succession Planning
Who, What,
When, Where,
How and How
Much?
Having Those
Conversations
Mediation

4. Interplay
Estate
Planning
Succession
Planning
Business
Planning

5. Estate Planning
• Estate planning is the
paper part of the farm
estate planning
process
• It is more than a Last
Will and Testament,
although that is one
piece of the puzzle

6. Estate Planning
Trust(s)
Advanced
Directives
• Health Care Proxy
• Living Will
• Power of Attorney
Last Will
and
Testament

7. Estate Planning
Last Will and Testament
• Who gets what when you die
• Also notes who is the executor
of the estate
• If there are unemancipated
children, then it should note
who is the guardian of the
children
• Testamentary trusts can be
utilized
• Must be properly executed with
2 disinterested witnesses

8. Estate Planning
Advanced
Directives
• Power of Attorney
• Health Care Proxy
• Living Will
• Burial Information

9. Estate Planning
Trusts
Revocable
Irrevocable

10. Business Planning
Sole
Proprietorships
• Certificate of
Assumed
Name?
Partnerships
• Limited
Partnerships
• General
Partnerships
Limited Liability
Companies
• Can be taxed
as C-Corp or
S-Corp
• Series LLC’s in
some states
Corporations
• S-Corps
• C-Corps
• B-Corps

11. A final word on Business Planning:
Prenuptial Agreements
The word “prenup” should not be
taboo with farm families
Before getting married, farmers
should speak to a matrimonial law
to get an overview of how divorce
may impact the family farm
• It’s one of the Big D’s
• Prenups can deviate from the law in
different ways while protecting the security
of both parties

12. Succession Planning
• Succession Planning is
different concept
• It’s a plan to discuss how
management
responsibilities will get
passed down from one
generation to the next

13. Succession Planning
In some ways, the “estate
plan” can be the easy part.
The “succession plan” may
be more difficult.
The “estate plan” and
“business plan” need to be
in alignment with the
“succession plan”

14. Succession Planning
• The succession plan
needs to be
memorialized
• Who is willing to take
over the management
of the farm?
• What needs to take
place so that person is
properly trained?

15. Operations Manuals
An operations manual may be
an invaluable tool to help train
younger generations
Break down each of the
operations step-by-step
Can be a useful reference
manual

16. A Word on Planning
This can be a balance act taking
into consideration the interests
of all the parties involved
With estate, succession and
business planning, the “goals”
can change over time
• Think about the priorities
• Those priorities may change overtime

17. Who, What, When, Where,
How and How Much?

18. Who
It is a mistake to think that farm estate
and succession planning is only for the
“older generation.”
It is a mistake to think that you need to be
rich in order to get an estate plan.
Nearly every over the 18 can benefit from
some type planning – even if it’s just a
simple Last Will and Testament, Power of
Attorney and Health Care Proxy

19. What
Farm estate, business and
succession planning can be
done in STAGES according to:
• Need
• Budget
• Time
There is no “one-size fits all”
estate plan

20. When
Now is the time. Estate planning
is so easy to put off. Afterall,
“I’m not dying tomorrow, right?”
Now may not be the time to get
the “perfect plan.” Get a plan
and perfect it overtime.
If you have a plan in place, get it
reviewed every 3 to 5 years.

21. How
This is not the time to use DIY form
websites like LegalZoom.
Talk to an attorney. Heck, talk to a
few.
Get recommendations. Ask your farm
lawyer, financial advisor, accountant,
extension specialists or agriculture
organizations for recommendations.

22. How Much
This isn’t the time to “get a deal”
Carefully interview attorneys and find
someone competent and experienced
in farm family estate, business and/or
success planning
Might need a combination of
professional involved in the process

23. Having Those Conversations
• It’s paramount for farm
families to have tough
conversations with one
another about the estate
and succession plan
• There is never a “right”
time.
• Holiday season can be a
good time to have the
needed conversations-
better in person vs. the
telephone
• Conversations must happen
regularly

24. Mediation
Mediation can be an effective
way to have those “tough
conversations” among multi-
generational farm families
Mediator are a neutral third-
party who is there to facilitate a
conversation
• Separate attorney(s) will be used to
draft the documents

25. Please Stay in Touch
cari@rinckerlaw.com
www.rinckerlaw.com
Illinois Office:
301 N. Neil Street, Suite 400
Champaign, IL 61820
(217) 531-2179
Twitter: @CariRincker @RinckerLaw
www.facebook.com/rinckerlaw
http://www.linkedin.com/in/caririncker
Snapchat + Periscope: CariRincker
IG: @CariRincker + @RinckerLaw
YouTube: /CariRincker