How many times have you heard someone say those words? Each and every time, I think of a funeral, but I never mention it, it is just considered too odd. People are not supposed to think and talk about dying, it creeps so many people out. Talk about death too often, and you soon become a social outcast, with your friends, and also with some members of your family.

We must think about farming as a business, even though for most of us it is often a lifestyle as well. Many of us have ideas as we build our farming operation of the future of the business, as if we are never going to die. Few of us want to think of tearing apart what we spent a lifetime building, or tearing apart what our Fathers and Grandfathers helped to build. A good business has an exit strategy, and death is often the form of exit farmer's use.

But, I am young and healthy; I have a long time to think about what happens when I die!

Continue article

ADVERTISEMENT

We all know death can happen to anyone, anytime. When we drive down any highway, death is only about a foot away, the distance between two cars meeting head on with a stripe of paint between them. At 55 miles per hour, one swerve into the oncoming lane could well mean death at any age. Since farming is one of the most hazardous occupations, many other fates could well bring death at any age. As much as we want to push that thought into the background of our minds, we must face the possibility and accept the fact of our imminent mortality.

What sort of plans should I consider in case of my death?

It would be impossible to make just a few rules for everyone to follow in order to plan for death. There are: however, several basic ideas to consider and plan for at any age. Discussions about your plan should often be made with family and others that would be impacted strongly with your death. These discussions do not have to be in detail, as some of your choices may be private. It is often a good idea to discuss options after your death for the peace of mind of those who would be devastated by your passing. Sometimes others can provide input to your decisions that you had not considered. Most of us want to be remembered as loving and considerate, and the wrong decisions about your estate could send messages to family after your death that you did not want to be communicated. There is just no way to say, "I'm sorry, I didn't mean that to happen" after you are in the grave.

Probably one of the first things to discuss with friends and family would be insurance.

Farmers know risk; many accept crop insurance, property insurance, and liability insurance as a fact of their business life. Life insurance sometimes is not considered important, as we personally cannot benefit from that loss. A properly prepared life insurance policy; however, can help pay off outstanding debts, pay for those transition expenses as your heirs adjust to a new way of life, and also help with possible estate taxes that might be incurred after your demise. Just the simple funeral expenses are no longer that simple, as burial costs continue to escalate.

Talk about your business structure as a way of preparing for a transition.

Many farms are held as single or joint tenancy. For a small estate, joint tenancy between husband and wife sometimes may be a way of preparation for transition of the farm after someone dies. It does not take too much growth of the farm assets to make this form of estate planning to become obsolete.

Sometimes income tax considerations make incorporation or a partnership desirable, and those arrangements can also be estate-planning tools, if structured properly. Your tax professional often is capable of guiding you not only in ways to save yearly tax money, but also guidelines on how to prepare your estate in the event of death. There are a host of capable and incapable professional planners for death and taxes, many are excellent, and a few just exist to prey on the innocent. You must shop around for the best lawyers and estate professionals in your area in much the same way you shop for a tractor or combine. Most successful farmers know how to rate machinery as a best value, few of us think very hard about selecting the best person to handle what may well be our largest financial purchase; an estate plan that transfers assets built over a lifetime.