Estate vs succession planning – Why you need both

Estate planning and succession planning are closely linked but they are not the same. Farm business owners need both.

Estate planning focuses on what happens to your assets when you pass away or lose the capacity to make decisions. It includes having an up to date will, Enduring Power of Attorney and other legal documents to make sure your wishes are carried out. This is incredibly important when high-value assets such as farms are involved.

Succession planning is about the future of the farm business. It considers who will manage the business, how ownership may transition over time to the next generation and how family members can work together to achieve a fair outcome.

Having one without the other can lead to farming families facing uncertainty, conflict, as well as financial and legal challenges. This can become very costly both financially and emotionally. Not to mention the significant strain on family relationships.

Starting these conversations early with your family allows time to discuss goals, concerns and expectations, which can help prevent misunderstandings and identify any issues that need to be resolved.

It’s vital to obtain professional legal, accounting and financial advice throughout the process. Carrying out your estate planning and working through your succession planning will both protect your family and your farm business for future generations.

Rural Financial Counsellors can provide preliminary support with succession planning. They cannot provide advice but can support you to start the process and connect you with the right professionals.

Don’t wait until a crisis occurs, start the planning process early and obtain the right professional support. Get the ball rolling.