For any farm owners, it is imperative that some financial planning takes place. While we understand that growing up on the farm may mean that you don’t have much of an interest in financial planning, it still is very important. Our team at Dunncreek Advisors has a passion for helping farm families develop a revocable living trust. A revocable trust allows for the trust to be adjusted or amended by the grantor at any point in time. The reason we feel that a revocable trust is so important for farm families is so that all of the plans are set should the owner die or become incapacitated. This is not a conversation that many people enjoy talking about, but it is extremely important.
How a Revocable Trust Can Help Your Farm Family
● Avoid the Legal Battle - The last thing that a family wants to deal with after the sad loss of a family member is probate. Setting up a revocable trust can mitigate the need for probate, because the answers will be found right in that trust. The probate process can be expensive, draining, time consuming and can create added tension that isn’t necessary.
● Dealing with Land in Multiple States - Probate can become even more difficult if land is owned in multiple states because each state may have different rules and regulations. In turn, hiring separate estate attorneys would be needed and could hurt the legacy plan financially. The more affordable route is to create a revocable trust and having a deed in place that transfers the ownership of the land to the trust.
● Keep things Private - In small farm towns, word spreads fast. Wills that are filed with the court after a death quickly become public record. The way to keep your business private is to create a revocable trust, as this document remains private even after death. This will help keep the financials within the family, rather than it turn into gossip around town.
● Blended Families - Second marriages and blended families can make decisions around a family farm more difficult. A revocable trust focuses on leaving lifetime benefits to the surviving spouse and then leaving the assets to children after death of the spouse.
● Leadership Decisions Around the Farm - A revocable trust allows a farm owner to choose an individual to run the farm business if the owner is no longer able. This helps to ensure that business will continue with minimal disruption upon your death.
● Care for Special Needs - A revocable trust in place can help to ensure that dependents with special needs continue to receive benefits long after the farm owners death.
If this article has you starting to think about whether or not you need a trust, get in touch with my office at rdunn@dunncreekadvisors.com. I always enjoy meeting with people who have begun thinking about their future. Dunncreek Advisors does not provide legal or tax advice, nor is this article intended to do so.