“Helping Ohio Farm Families Transfer their Farm” David L. MarrisonAssociate Professor Chris BruynisAssistant Professor Mike GastierExtension Educator 2012 National Women in Agriculture Conference Thursday, March 29, 2012

Why don’t farm families plan better for the transition of their farm business?

Need for Workshop With the expiration of the Bush era tax cuts in 2010 and the subsequent reduction of the federal estate tax (decrease to $1 million exemption in 2013), farmers are confused and concerned that they needed to adjust their tax planning strategies. Ohio eliminated their Ohio Estate tax to begin in 2013 which will effect earlier written estate plans. Research has shown the lack of estate planning across Ohio.

Educational Initiative With the increased interest in estate planning, OSU Extension Educators created a curriculum notebook and PowerPoint presentations addressing current information on family communication strategies, checklists of documents needed, different estate planning tools with their tax ramifications, business continuity with off-farm heir strategies, and long-term care issues. The educational material was presented in 5 one day workshops (n=121) followed by individual consultation if requested by the farm family. Additional workshops are planned for 2012.

Workshop Objectives To increase participants’ ability and confidence level when initiating conversations about farm estate planning with their families. To provide an overview of estate planning tools available and increase participants’ understanding of these tools. To provide ideas and viable business solutions to protect the farm business and allow for equitable treatment of off-farm heirs. To increase the awareness of long-term care and how it may affect estate transfer and long term care insurance decisions.

Presentation Titles Let’s Talk! Getting Your Business Affairs in Order The Cost of Doing Nothing Estate Planning for Family Farms Building for the Successful Transition of Your Agricultural Business Medicaid Planning Long Term Care Issues: Keeping the Family Farm in the Family Documenting Your Assets

Knowledge Measures Measure 1: I have ideas on how to start a conversation with my family about estate planning Measure 2: I understand that communication is an important part of farm transition Measure 3: I know what documents I should have organized Measure 4: I plan to get my documents organized and have a family meeting Measure 5: I understand the different estate planning tools

Knowledge Measures Measure 6: I understand tax issues related to my estate Measure 7: I have ideas on how to address off-farm heirs Measure 8: I understand long-term care issues Measure 9: I have ideas for addressing long-term care issues Measure 10: I understand the different business transfer strategies that can be implemented

Knowledge Measures

Knowledge Gain

Top Reported Gains (1.37 to 1.95) Measure 4: I plan to get my documents organized and have a family meeting 1.95 Measure 5: I understand the different estate planning tools 1.94 Measure 8: I understand long-term care issues-1.86 Measure 1: I have ideas on how to start a conversation with my family about estate planning-1.85 Measure 3: I know what documents I should have organized-1.82

Other Results 95% of the families indicated they plan to hold an intergenerational family meeting 84% of the families indicated they planned to follow-up with their attorney to make changes to their estate plan. 15 individual phone consultations held and three family mediation meetings.

Transition/Succession Resources 12 OSU Extension fact sheets available. They can be found at: “Transferring Your Farm Business to the Next Generation” Bulletin. It can be found at: Ohio Farm Succession Web Site

Estate Planning Resources 12 OSU Extension fact sheets developed. Can be found at: IRS Form 706

Acknowledgements The authors would like to thank attorneys Paul Wright, Robert Moore, Kelly Brakefield Moore and Jim Leonard from Wright Law Company for resourcing the meetings.

For More Information David MarrisonChris Bruynis 39 Wall Street475 Western Ave., Suite F Jefferson, Ohio 44047Chillicothe, OH