Estate Planning vs. Succession Planning vs. Transition Planning
Estate planning, succession planning, and transition planning are often talked about together as farmers and ranchers prepare for the future, but each one serves a different purpose. Keep Farmers Farming legacy consultant Alan Hojer explains estate planning focuses primarily on the transfer of wealth after death.
And succession planning is really about replacing people, replacing somebody. In other words, when somebody is going to retire, what is the succession plan for that individual?
Succession and transition sound similar, but transition planning goes a step further, emphasizing the transfer of business culture, values, and practical know-how.
Things that we need to do for sure in the transition planning is we need to recognize that time is critical. We want to do that while we have time on our side and time as an asset. So therefore we have time to truly transition the things we can see such as knowledge, such as patience, decision-making skills.
Keep Farmers Farming works alongside farm and ranch families through regular meetings, helping them build a shared vision and strategy. Hojer notes every family's plan looks different depending on their situation.
The challenge is so large. We are direct consultation help people through these challenges that they need to go through, that they're living. It's the most important thing that they need to get right.
Transition consultation often includes financial reviews that engage all parties, prompting questions and new business insights. Keep Farmers Farming is a division within the South Dakota Agriculture Foundation.