The family farm is a business that goes beyond providing income and support. It transcends generations. It’s a way of life. When it comes to keeping it that way, family dynamics matter. Do any of the children help with the farm? Do they live off the farm income? Do you want to make sure the farm stays in the family?
A number of important legal factors need considered when it comes to running a farm.
- Does the owner(s) have an up-to-date financial and healthcare power of attorney in place in case of any type of accident or injury? These documents will help insure that the farmer’s family does not have to go through the living probate process simply to carry out farm operations and speak on the farmer’s behalf.
- Does the owner(s) have a limited liability company (LLC) in place? Having the farm owned by an LLC ensures that the farmer’s personal assets would not be protected from a lawsuit involving the farm. An LLC can also help ensure the farm stays in the family once the farmer has passed away.
What does all this mean? You have a farm, you need a plan. The plan can avoid unnecessary probate. A plan which includes a trust can ensure that the family farm can pass down to other family members without having to go to court and pay excessive legal fees.
What about protecting the farm from long-term care costs. Should the farmer or the farmer’s spouse need care, the farm is an asset and may have to be sold. With a particular type of trust that we offer at AlerStallings, however, this can be avoided.
Let’s have a discussion. Contact us to learn how to ensure you have the proper planning in place for your family farm. For more information, contact an AlerStallings attorney today to arrange for a complimentary phone consultation.