Succession planning is important for every family business. There are many choices to make in relation to who will play what role in the business, how the ownership of the business will transferred and allocated. It is also important that if you want the business to continue along a certain path that you teach and train the potential successor. For a ranch or farm that has been in the family for years, or even generations, these may only be the beginning.

A family farm or ranch often holds a special place in the heart of everyone in the family. The continuing operation of any family farm or ranch is due to long hours and sometimes backbreaking work. These places also hold great memories, potlucks and family reunions, or spending hours on horseback. As part of a comprehensive estate plan you can design a plan that will convey the farm to the next generation in a manner of your own choosing.

In situations where there are numerous individuals that may have a future stake in the farm, one way to start is to talk to all of the interested parties, and find out what sort of ideas each person has for the future. Is there someone who has the desire and skill to continue operating the farm? If that is a desirable outcome, are there concerns about equalizing the distribution of the estate among those who will not be farming? There are options such as a deed with right to farm the land for the lifetime of a certain individual that may help you achieve these goals.

Other times there may not be a family member who is ready to step in and take over the operation of the family farm. In that instance the family may consider another set of options as part an estate plant. Sometimes families may choose to retain ownership of the farm while renting the land to provide supplemental income, in other situations it may make more sense to sell it outright.

These can be difficult decisions. It is important to talk to an experienced and knowledgeable professional if you have questions.

Source: HobbyFarms.com "Lemons Versus Lambs: What to do When You Inherit the Family Farm," Judy Burns, Oct. 13, 2011