THE MOVING GOAL POSTS

Hitting Your Transition Plan Target

BY RYAN CONKLIN, ATTORNEY, WRIGHT & MOORE LAW CO., LPA

Some of my earliest memories are sports-related. I can remember watching Ohio State football games and playing basketball, baseball and golf all the time. Whether watching sports or playing them, the primary goal is to win. Though winning is the main objective, sports have a number of secondary goals. Learning teamwork, staying in shape or obtaining college scholarships are great

RYAN CONKLIN examples. Like athletics, succession planning is the sum of primary and secondary goals. The key question for each farm and family is what those goals should look like. Setting goals is the most important part of the planning process.

What do succession planning goals look like?

If you’ve seen one of our office presentations, you know we extensively promote goal formation. In the succession planning context, goals represent what you would like your plan to accomplish when it is fully executed and administered. Examples can include eliminating conflicts, managing tax obligations, keeping farmland in the family, completing a smooth transition, addressing problem heirs, helping grandchildren, planning for long-term care, gifting assets, avoiding probate or, perhaps the most difficult goal to establish, deciding between a fair and equal plan. Although this list covers an array of topics, it’s a short list of possible goals. Additionally, each set of goals should mirror the uniqueness of each farm and family. That is why it’s important to identify the priorities for your family and not necessarily use the same goals as your neighbors.

What’s not a succession planning goal?

My short answer to this question is to avoid any discussion featuring questions you need a professional to answer. Deciding whether you need a will or trust? Wait until you talk with an attorney. Trying to determine whether a buyout will impact cash flow? Enlist the help of your lender. Concerned about tax issues related to your plan? Bring your accountant into the picture. Looking for financial products to come up with cash? Your financial adviser should be able to help. When identifying your succession planning team, target well-trained advisers who can take your goals and develop customized solutions to meet them. A professional who does not cater to your goals should be a red flag. Also, researching options online can be helpful when striving to learn more about a subject, but be careful not to devise a plan without professional help. Focus on goal formation, and leave the complex questions to your succession planning team.

How do you establish these goals?

Open and honest communication is key to creating and achieving your goals. Though each family may differ with the method to arrive at this step, communication is a mandatory component to goal selection. While it may sound easy, these conversations can be very difficult. They can produce comments that are hurtful, reopen old wounds, force people to contemplate their mortality or cause farm owners to feel threatened. These factors and others act as barriers to the open and honest communication that is essential. Some families need the help of a facilitator. Scheduling family meetings, drafting agendas and outlines, and persistent nagging have proven effective in the right circumstance. You just need to know which method works best for your family. If communication is proving difficult for your family, AgCredit, the Ohio Farm Bureau and other Nationwide partners have a terrific tool for goal identification: the Land As Your Legacy program. It is a goal-oriented, intensive goal formation effort that can kick your succession planning into high gear. Talk to an AgCredit team member to identify a Land As Your Legacy expert in your area. Unlike sports, which has prescribed rules and commonly understood objectives, succession planning goals are a moving target. They can change from year-toyear based on economic conditions, family dynamics and other factors. Despite these changes, one objective for your plan should remain constant: It just needs to work. If it doesn’t, it’s time to review your forms with family members and an attorney to ensure you are able to hit your transition planning target.