Conversations about how to pass on your family business aren’t always comfortable, but they’re essential if you want your estate passed to the right hands in a timely manner.
Susan Brugger and Nicole Steinbach are Rural Mutual agents that have been involved in these discussions for years. While the subject may be difficult to bring up, the consequences of not bringing it up at all can be devastating.
1. Insure assets
It starts with insuring your assets: farm, house, cars, etc. However, remember that at the end of the day, those things don’t matter if you are not there anymore and there’s no transition plan in place. Don’t forget to insure yourself – the most valuable asset of your operation. Rural Mutual can help you find the right life insurance to fit your situation.
2. Prepare your assets
Every situation is unique because assets can vary between farm businesses, land, retirement savings, houses, etc. To start preparing for estate planning, write down your assets and where you want them to go when you’re gone: the next generation, charity, conservation, etc. Painting the picture for your advisors can help make the planning smoother.
3. Include aging and funeral expenses
There’s nothing more heartbreaking than when a family posts a “GoFundMe” website to pay for the expense of a funeral. In addition, don’t assume your loved ones will be able to afford elderly care if needed. Assisted living is valued at almost $10,000 per month with the average stay at a nursing home of seven to 10 years. In-home health care with typically two years of service costs an average of about $70,000 per year. At the same time, make no assumptions there’s an opening at your preferred nursing home or in-home caregivers are available.
4. Bring all your advisors
Build an advising team that can help you navigate this next chapter. Your advisor team could include yourself, spouse, kids, insurance agent, accountant, and attorney. Bring all these voices to the table to create your transition plan together.
5. Connect with Rural Mutual
Rural Mutual partners with Farm Bureau Financial Services to offer life insurance and estate planning. Whether you enact your plan in 20 years or two years, start the conversation now. Even if you created a will 10 years ago, goals change. Review your plans and make sure they still fit with your life today. It’s important your documents are updated and properly recorded.
We want to provide the knowledge and insight to help you make the best decisions to protect your farm and way of life. That’s why we go beyond the policy to educate with additional content around best practices. Reach out to a local agent to get started.
