Success StoryEstate Planning for Farm Families



Estate Planning for Farm Families

Author: Victor Williams

Planning Unit: Laurel County CES

Major Program: Farm Management, Economics and Policy

Plan of Work: Financial Education

Outcome: Intermediate Outcome

According to the 2022 Census of Agriculture, the number of farms in Laurel County is rapidly decreasing. Between the 2012 and 2017 Census reports, there was a 5% decrease.  The most recent data shows an additional decrease of 9%.  Approximately 98% of the operations are family farms; however, many farm owners are unaware of the proper planning needed to protect the farm as it is passed down through generations.

Even farm owners who have prepared a Last Will and Testament may not be aware of the need for specific allocations of real estate to prevent problems with heirs property laws. If a parent simply leaves a farm to be shared equally among their children and the children are unable to agree to a proper use or division of the real estate, the result could be the sale of the property, distribution of proceeds among the heirs, and the end of another family farm.

To educate local farmers about family farm succession, the Laurel County Agriculture agent collaborated with a local attorney who specializes in estate planning, wills, and trusts to present Estate Planning for Farm Families.  Utilizing the FCS Estate Planning publications from the University of Kentucky, the group learned legal terminology, options for passing down property, the need to be specific about inheritance distributions, and the importance of discussing final wishes for the disposition of property with the family members who are involved.

The twelve farm owners in attendance received a binder with copies of the University’s estate planning publications and guides for gathering information to set up their personal estate plan. A brief survey revealed that none of the participants currently had a proper estate plan, but all expressed the intention to start the process immediately.  They also requested that a follow-up workshop be presented to explore options such as trusts and limited liability corporations for family farms.

 






Stories by Victor Williams


Implementing Breeding Soundness Exams (BSE)

about 5 months ago by Victor Williams

Implementing Breeding Soundness Exams (BSE) on a small cattle producers farm is a large hurdle for E... Read More


Estate Planning for Farm Families

about 7 months ago by Victor Williams

According to the 2022 Census of Agriculture, the number of farms in Laurel County is rapidly decreas... Read More


Stories by Laurel County CES


4-H Capitol Experience

4-H Capitol Experience

about 7 months ago by Elizabeth Easley

According to a survey by the Annenberg Public Policy Center in 2016, one in four youth were unable t... Read More


Storybook Walk

about 4 months ago by Lora Davidson

The FCS Agent and FCS Team at the Laurel County Extension office decided to host a StoryWalk as a un... Read More


Stories by Farm Management, Economics and Policy


Family Farm Summit

Family Farm Summit

about 4 months ago by Matthew Chadwick

The problem and planned program to respondFarmers of all disciplines recognize the need to plan for ... Read More


Land Rental Considerations Program Helps Farmers and Landowners

Land Rental Considerations Program Helps Farmers and Landowners

about 4 months ago by Miranda Rudolph

According to the USDA, the average age of U.S. farm producers in 2022 is 58.1 years, and the number ... Read More