Succession planning for farmers can be difficult and at times stressful, however it is very important. Often different members of a family have varying goals and expectations when it comes to their inheritance. Sometimes planning can seem like a huge task with too many different decisions to be made which risk conflicts and disagreements. This is why succession planning should be discussed early and regularly so that all family members know what is to be expected.

Succession involves far more then just transferring assets, it is an evolving process as the current owner winds down and the next generation steps in. This can cause tension within the family among siblings if one child is taking over the farm or with the parents as letting go is not easy. This is why open dialog and constant discussion is so important.

Generally, a plan will be put in place now in order to achieve succession at some time in the future. If you are not considering moving assets to the next generation at present, you should always be mindful of preparing for succession in the future.
 
At GJ Waters & Associates we understand farming businesses and the issues that arise in forming a succession plan.

There are a number of steps to a succession plan:

• Work out your current situation.
• Work out and discuss the goals, objectives and individual needs of the various family members involved.
• Plan to get from the current situation to achieving the goals and objectives (addressing stamp duty, capital gains tax, income tax, GST, Centrelink and other compliance issues in the succession planning process).
• Set a timeframe for transition and commence implementation of the plan.
• Document the plan and ensure all family members have a copy.
• Constantly review and amend the plan to reflect changing circumstances.

 
At GJ Waters & Associates we understand farming businesses and the issues that arise in forming a succession plan.

This information is for guidance only, and professional advice should be obtained for your specific circumstances before acting on the information contained herein.