b'TRANSITION PLANNINGHow to Get Your Non-farm Siblings On-board With Your Farm VisionARE YOUR RELATIVES still talking to your farmto all the heirs, theres room for appreciation, gratitude, parents? Has a broken branch of your family tree beenand a positive attitude. Whos going to help you deal severed forever due to estrangement or land ownershipwith the emotional factors affecting planning, and help friction?you decide which expectations of wealth transfer are We mix expectations about money. What moneyworkable? Its wise to have a group family meeting with means to people is different. Then we add the businessthe financial planner, accountant, and lawyer present need for the farmland to stay intact while using poorto help explain why mom and dad are making plans.communication or conflict avoidance. This is how theAnother key issue is embarrassment. Seventy-year-volcano blows up. old farmers may be humiliated and embarrassed they ELAINE FROESE,Fairness for both farm and non-farm heirs is helpinghavent managed cash flow well or fallen on hard author, speaker,everyone in the family be successful. The degree oftimes, not paying attention to building their personal coach, farm partner. Life iswealth for the parents and the children will likely bewealth beyond the farm. precious. Death isdifferent.Whos asking the farming child to take on debt to not to be feared. Visit elainefroese. What if you have always been wealthier than yourhelp finance some lifestyle income for the parents? com/shop/ forfarming parents? These folks just want mom and dad toSuccessors who think they should be given communication resources toenjoy the fruits of their labour and have a decent life aseverything really flame the fires of conflict with get the toughthey age in place on the farm or move to a great lifestyle.siblings who dont know the innate details of low conversations started.The folks who are not happy about the plan for thewages, delayed compensation, and other transfers of land to stay intact with the farming heirs feel they aremoney between parents and farm heirs. You can clear not worth anything because the story they are tellingthis up quickly with open, respectful communication.themselves is money equals love. The unhappy heirsHow do you get your non-farm siblings on board may also be hanging on to financial promises made towith the farm vision?them by one parent without the knowledge of the other. 1.Treat the farm like a business and be transparent Lets change the script. with finances, cash flow, debt, and whos expected Lets ask the non-farm heirs what they expect fromto play a role in the business long term.the farm wealth and whymanaging expectations2.Share your wealth transfer intentions with all means getting folks to express their thoughts on paperfamily members. Ask them What does fairness or verbally so you can manage assumptions. Are youlook like to you? You may disagree, yet you can willing to be financially transparent with your childrenexplain your perspective and seek to understand to be clear about the amount of wealth that is availablewhat heirs are needing and wanting. Parents for transfer? Working ahead of this conversation mayarent responsible for making all their children involve a coach or financial planner who can facilitateeconomically equal.your family meeting to ensure its safe and respectful.3.Dont hide behind your advisors and say, The An adviser holds an inside track because they areaccountant or lawyer will just tell me what to do! aware of the heirs expectations and parents due to theBe very curious with everyone and ask probing pre-meeting confidential coaching sessions. questions to drill down on expectations. Let folks Merle Good of Farm Credit Canada suggests a long- know what is reasonable and workable.term rental agreement for the farming heir to rent a4.Hire a financial planner to be clear about what certain portion of land from a non-farm heir, and inyou need for income streams for the next three 15 years the farmer has first right of refusal to buy thedecades.land. Farms need access to land. Unfortunately, many5.Share your business vision and dreams for the farmers do not want to be in business with their non- farm. Ask all the family members what kind of farm siblings. relationship they would like to have with the Some children are single and need to create wealthfarms activities.on their own. These siblings are often seen as needing6. Hire a coach to help you navigate conflict, more than those with partners as two income families.resolve issues, and create healthy workable I am a big advocate of gifts with a warm hand, not acommunication for family harmony through cold one. When parents are very open about the giftsunderstanding. 52SPUDSMART.COM Spring 2023'