Do you have a “go-to person” for advice? Children often rely on their parents or grandparents for advice. Adults often rely on certain friends. My students, well, they rely on Wikipedia, Google, or YouTube. Farmers often rely on their accountant for advice – about everything related to the business.
Relying on only one source of information may not be the best idea when it comes to transition planning.
There are a lot of issues related to transition planning that need to be discussed and analyzed: Taxes, Liability, Ease of Transfer, Management Control, Communication, Cash Flow & Profitability, etc. You need to develop a transition planning team so that nothing major slips through the cracks.
So, who should you consider for your transition planning team?
Do you really need all of these professionals on your team – probably not. Will it hurt to have them on your team – probably not. Will they help you and your family make better decisions, probably so. They can provide valuable guidance that can:
The next big question is, “what will it cost me to have these folks on my transition team?” I can’t answer that, as it will be different in every situation. Talk with these people to see if they are interested and how they would like to be compensated for their services. Regardless, get the people who can provide you with the advice and guidance you need.
To read more about Carolina Farm Credit, our members and the ag industry, check out issues of our Leader magazine—you can read them online.
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