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1. Serving over 130 farming
families and their businesses. 519.339.6885
The 7 Steps to
Farm Succession Planning

2. The 7 Steps to
Farm Succession Planning
Steve Steinman, CFP CLU CH.F.C. CAFA
President , Steinman Financial Network

3. Statistics show that the lack of planning on the part
of farmers is ALARMING.
A survey by Successful Farming found that only 30%
of farmers actually have an estate plan.

5. Too many times these decisions are made
under time pressure (i.e. we have to do
something now) or under emotional stress
(i.e. just after the death of a parent).

8. Get everyone to put their real expectations on the table
so you have a solid basis for negotiating the future.
When people form relationships, there are at least three levels of expectations
involved:
• those that we know we have and talk about (e.g. that we want to continue to
work and live on the family farm).
• those we know we have but haven’t discussed (e.g. that we want to inherit the
family farm).
• some we don’t even know we have - until they are not met (e.g. that we will be
able to live on the family farm until we die).

9. What happens if?
Many different unexpected scenarios can happen. Without a
plan, the outcome is anyone’s guess.
1. What if none of the farm children want to take over the farm?
1. What if mom outlives dad? How will she choose to manage the
business?
2. Rent out the farm? Sell the farm?
3. What if mom remarries after dad dies?
4. What if mom owns the farm and mom dies before dad?

12. Farm Succession Planning is not a one-time event, it is a
long-term strategic process that involves executing the plan
and re-adjusting based on the changing family situation
(new family members/ members that pass on) and the
economic market.
Letting your family know that this is a long-term process
that will benefit everyone involved and getting their
commitment early on to participate to the end is an
important preliminary step.

14. Many don’t recognize that a lot of communication is in
what’s not said - silence may not mean agreement, but
just the opposite.
Real farm succession planning issues are not financial, not taxes, they
are not business related at all in fact.
They are based on your ability or inability to talk with your family
members honestly. If you can talk out the
issues, concerns, dreams, and assumptions with each and every
person affected by the decisions you will ultimately make – you will
have the basis for
your farm succession plan.

16. Farming Children versus Non-Farming Children
Are the parents willing to treat all of their children
fairly and equitably in their estate plan?
How will this be carried out?
When will this be carried out?
As the children were being raised, some children worked harder
than others and may have actually contributed more to the parents’
farming operation and their estate.

18. Spouses of Children
Are the in-laws considered or even treated as “family” in the
“family” business? Do in-laws involved in the family business have a
say? Are there pre-nuptial agreements in place?
Favourite Children
This is a rather delicate issue to discuss within the family (especially
with parents) because often times Mom and/or Dad have already
identified “certain favorites” among their children.

19. This process will require much thought, many hours of discussion
by the parents and children, and even seeking out the needed help
of a professional consultant.
It is the responsibility of the parents to initiate this estate
planning process. Mom and Dad have to take action and
get this process started now.

20. • Facilitate dialogue & communication with family
members and identify their goals, needs and aspirations.
• Retire comfortably with guaranteed funds for your
retirement.
• Your farm to be passed on from one generation to the
next in the manner you choose.
• Have money available for the transaction at all times to
avoid delayed settlement.
• Have every member of your family taken care of.

21. • Eliminate the need for borrowing from the bank for the
process of farm succession.
• Have all transactions carried out in a tax neutral way.
• All family members know what is happening, who is to
inherit what, when, and the process to achieve it all.
• Have agreements that outline the future and are signed
off by all parties.
• To have a flexible farm succession plan that can be
changed as your personal circumstances invariably do.

22. • How the farm owners will retire from the farm with
guaranteed funds for their retirement.
• How and to whom the farm will be passed
on from one generation to the next.
• How funds will be made available for
transactions.
• How every member family will be taken care of.
• How financial decisions about the farm will be made.

24. Our goal at Steinman Financial Network
After you have worked
with Steinman
Financial, that all your
family can happily sit
together at Christmas
Dinner and feel good
about the FARM
SUCCESSION PLANNING
they have completed with
our firm.

26. Visit steinmanfinancialnetwork.com