Owning and maintaining a farm comes with a lot of responsibility, not to mention a lot to consider when it comes time to write your last will and testament. As professional wills and trusts attorneys, the team at Davidson Law Group has experience in helping farm owners decide the best way to secure the future of their property, land and loved ones.
In this blog entry, a wills and trusts attorney goes over some important information to know if you are a farm owner who is looking into estate planning, so you can be prepared.
Determining Your Assets
What counts as an “asset” in the context of owning and operating a farm? When it comes to farm property, your home, any outbuildings and barns, trees and fencing on your land, water and irrigation systems, and the land itself are all considered assets.
When it comes to livestock, then it depends on what kind of animals you have as to whether they are assets or inventory. Animals with shorter lifespans that produce – such as chickens used for eggs or meat – are inventory. Animals with longer lifespans and longer-term benefits – horses, sheep, goats or breeding animals – can be considered assets.
Choosing Your Beneficiaries
Who would obtain these assets once you are gone? If you are hoping for your farm to continue, then you should think hard about who inherits it from you. A farm, even on a smaller scale, is a big responsibility, and you need to be sure you choose a beneficiary who can handle it.
Remember that the person who inherits the farm not only has to think about its daily operation but additional tax and financial responsibilities. If you have family members vying for ownership, a good wills and trusts attorney can help you determine which is the right person.
Related Post: Estate Lawyer Advice on Splitting Assets
Selling the Farm
As with any business property, you do have options for what happens to your farm other than leaving it to someone else. For example, you could sell your farm and distribute the financial benefits to the family you leave behind in your will.
This option avoids the difficulty in deciding who to choose as a beneficiary to take over, although it is a big decision to sell and let go of something you may have spent many years building.
Establishing a farm or ranch is incredibly hard and dedicated work, and selling it is not a simple thing to do. In this case, a wills and trusts attorney can still help you distribute what you get from the sale in your will.
Related Post: Estate Planning Attorney on Leaving Offshore Assets
Contact a Wills and Trusts Attorney
Hopefully, this information from a wills and trusts attorney can give you a little more clarity about what will be involved in securing your own Texas legacy. If you are ready to start your estate planning, contact the Davidson Law Group in Allen, Fort Worth, or Tyler. We have extensive experience in helping people set up charitable trusts, write wills and plan the future of their families, and we can offer you a free consultation to get started.