Prepare the owners
- Ownership transition principles
We will work with the current and future owners to explain who is eligible for ownership, when they can become an owner, and how they become an owner. Equally as important are the principles by which owners exit from ownership (voluntarily or involuntarily), how owners make decisions together and how owners get paid.
- Written ownership agreements
The Ownership Transition Principles outlined above will form the basis for a written Shareholders’ or Partnership Agreement. Among other benefits, this agreement will help protect your farm and family from death, disability, disagreement, divorce, and debt. We will facilitate an exercise to develop the detailed provisions for an ownership agreement from which your lawyer will draft a legal document. All current and future owners will sign this important agreement, establishing the legal arrangements for entrance, exit, governance and other rules of ownership.
The senior generation needs to understand their future financial needs and the resources available for meeting those needs. A BDO Wealth Advisor can help you determine what is required from the farm for income and financial security.
When it is time, we will help you with the actual transfer of ownership of the farm, including the entrance of the next generation and perhaps the exit of the senior generation. At this stage, our farm transition team will help with valuation, tax and legal structure, terms of payment, and other conditions.
Ownership transition often means transferring your wealth from your share of the farm to financial investments. Investments should be professionally managed to protect your capital and provide income for your needs.
Planning for death is never easy. Family members should be confident that the farm and other family assets will be distributed to their intended beneficiaries in an orderly and tax effective way. We will work with you, your family, and your lawyer to help create wills, powers of attorney, and other elements of the orderly distribution of an estate in the event of a death.