For many Wisconsin farmers, their land and business are more than just assets—they are a way of life and a family legacy. Ensuring a smooth transition of your farm to the next generation requires careful planning and legal guidance. At Borakove Osman LLC, we are a premier firm of farm continuation planning attorneys. Furthermore, we have a special commitment to the farming community, as Attorney Shayna W. Borakove grew up on a Missouri farm.
As we specialize in farm continuation planning, we’ve helped families in Madison and across Wisconsin secure their agricultural heritage for years to come. Here’s our recommendations on how you can successfully pass your farm to the next generation.
Why Farm Continuation Planning Matters
Transitioning a farm is not a simple financial matter. Without proper planning, you risk legal disputes, tax burdens, and financial instability. A well-structured plan will help:
- Preserve the farm’s financial health
- Reduce family conflict
- Minimize tax liabilities
- Ensure a seamless transition of management and ownership
How to Successfully Pass Down Your Farm
1. Start Planning Early
- Farm succession planning is a long-term process, not a one-time event.
- The earlier you start, the more options you have to address financial, legal, and operational concerns.
2. What are Your Goals and Vision for the Farm?
- Do you want the farm to stay in the family for generations?
- Are all heirs interested in farming, or should ownership and management be separated?
- Will you retire completely, or transition ownership gradually?
3. Identify a Successor or Team
- Not all children or heirs may want to take over farm operations.
- Consider who has the skills, interest, and financial ability to manage the farm.
- If multiple heirs are involved, create a fair structure that clarifies roles and responsibilities.
4. Establish a Legal Framework
- Work with an estate planning attorney to create essential legal documents, including:
- Wills and trusts to distribute assets fairly.
- Operating agreements for multi-owner situations.
- Buy-sell agreements if ownership will transfer outside the family.
5. Plan for Tax Implications
- Proper planning can reduce estate and capital gains taxes.
- Explore options such as:
- Gifting strategies to transfer ownership over time.
- Conservation easements to reduce estate taxes while preserving farmland.
- Incorporation or LLC formation to protect assets and streamline ownership transition.
6. Develop a Financial Transition Plan
- Assess farm debts and cash flow to ensure sustainability.
- Consider insurance policies to provide financial security for heirs.
- Discuss financing options for the next generation, such as farm loan programs.
7. Communication with Family Members is Key
- Open conversations about expectations, roles, and responsibilities help prevent conflicts.
- Schedule family meetings to review and adjust plans as needed.
Work with a Madison & Dane County Farm Continuation Planning Attorney
Successfully passing your farm to the next generation requires an experienced legal team and a thoughtful estate planning strategy. Contact Borakove Osman LLC and we’ll make sure to walk you through the key elements you’ll need to address when planning your farm’s future transition.
We know that no two farms are the same, just like no two families are the same. Rest assured your farm continuation plan will be tailored to your specific needs.