Transcript OhioFarmEstatePlanningWorkshops

“Helping Ohio Farm Families
Transfer their Farm”
David L. Marrison
Chris Bruynis
Mike Gastier
Associate Professor
Assistant Professor
Extension Educator
2012 National Women in Agriculture
Conference
Thursday, March 29, 2012
Why don’t farm families plan
better for the transition of
their farm business?
Need for Workshop
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With the expiration of the Bush era tax cuts in
2010 and the subsequent reduction of the
federal estate tax (decrease to $1 million
exemption in 2013), farmers are confused and
concerned that they needed to adjust their tax
planning strategies.
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Ohio eliminated their Ohio Estate tax to begin in
2013 which will effect earlier written estate
plans.
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Research has shown the lack of estate
planning across Ohio.
Educational Initiative
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With the increased interest in estate planning,
OSU Extension Educators created a curriculum
notebook and PowerPoint presentations
addressing current information on family
communication strategies, checklists of
documents needed, different estate planning tools
with their tax ramifications, business continuity
with off-farm heir strategies, and long-term care
issues.
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The educational material was presented in 5 one
day workshops (n=121) followed by individual
consultation if requested by the farm family.
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Additional workshops are planned for 2012.
Workshop Objectives
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To increase participants’ ability and confidence
level when initiating conversations about farm
estate planning with their families.
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To provide an overview of estate planning tools
available and increase participants’
understanding of these tools.
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To provide ideas and viable business solutions
to protect the farm business and allow for
equitable treatment of off-farm heirs.
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To increase the awareness of long-term care
and how it may affect estate transfer and long
term care insurance decisions.
Presentation Titles
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Let’s Talk!
Getting Your Business Affairs in Order
The Cost of Doing Nothing
Estate Planning for Family Farms
Building for the Successful Transition of
Your Agricultural Business
• Medicaid Planning
• Long Term Care Issues: Keeping the
Family Farm in the Family
• Documenting Your Assets
Knowledge Measures
• Measure 1: I have ideas on how to start
a conversation with my family about
estate planning
• Measure 2: I understand that
communication is an important part of
farm transition
• Measure 3: I know what documents I
should have organized
• Measure 4: I plan to get my documents
organized and have a family meeting
• Measure 5: I understand the different
estate planning tools
Knowledge Measures
• Measure 6: I understand tax issues
related to my estate
• Measure 7: I have ideas on how to
address off-farm heirs
• Measure 8: I understand long-term care
issues
• Measure 9: I have ideas for addressing
long-term care issues
• Measure 10: I understand the different
business transfer strategies that can be
implemented
Knowledge Measures
6.00
5.00
4.00
3.00
Pre
Post
2.00
1.00
0.00
Measure Measure Measure Measure Measure Measure Measure Measure Measure Measure
1
2
3
4
5
6
7
8
9
10
Knowledge Gain
Gain
2.50
2.00
1.50
1.00
0.50
0.00
Measure
1
Measure
2
Measure
3
Measure
4
Measure
5
Measure
6
Measure
7
Measure
8
Measure
9
Measure
10
Top Reported Gains (1.37 to 1.95)
• Measure 4: I plan to get my documents
organized and have a family meeting
1.95
• Measure 5: I understand the different
estate planning tools 1.94
• Measure 8: I understand long-term care
issues-1.86
• Measure 1: I have ideas on how to start
a conversation with my family about
estate planning-1.85
• Measure 3: I know what documents I
should have organized-1.82
Other Results
• 95% of the families indicated they
plan to hold an intergenerational
family meeting
• 84% of the families indicated they
planned to follow-up with their
attorney to make changes to their
estate plan.
• 15 individual phone consultations
held and three family mediation
meetings.
Transition/Succession
Resources
• 12 OSU Extension fact sheets available.
They can be found at:
http://ohioline.osu.edu/bst-fact/index.html
• “Transferring Your Farm Business to the
Next Generation” Bulletin.
It can be found at:
http://ohioline.osu.edu/lines/bulls.html
• Ohio Farm Succession Web Site
• http://ohiofarmsuccession.wordpress.com/
Estate Planning Resources
• 12 OSU Extension fact sheets
developed. Can be found at:
http://ohioline.osu.edu/ep-fact/index.html
• IRS Form 706
http://www.irs.gov/pub/irs-pdf/i706.pdf
http://ohioline.osu.edu/estate
http://ohioline.osu.edu/ep-fact/index.html
http://www.ca.uky.edu/agc/pubs/fcs5/fcs5422/FCS5422.PDF
http://ohioagmanager.osu.edu
Acknowledgements
The authors would like to thank
attorneys Paul Wright, Robert
Moore, Kelly Brakefield Moore
and Jim Leonard from Wright
Law Company for resourcing
the meetings.
For More Information
David Marrison
39 Wall Street
Jefferson, Ohio 44047
440-576-9008
[email protected]
Chris Bruynis
475 Western Ave., Suite F
Chillicothe, OH 45601
740-702-3200
[email protected]