When it comes time to transfer the family farm, there are many estate planning vehicles through which farmers can get this task done. The two major transfer vehicles are wills and trusts. Although determining which vehicle is more appropriate will depend on the facts of each individual situation, a recent article discusses why a trust is a good option for farmers.
Importantly, a trust offers a farmer more control over the use and management of his assets during his or her lifetime, as well as after his or her death. This is because while a will simply directs the distribution of assets following a person’s death, a trust allows management and control of assets during a person’s lifetime, as well. This is especially important for periods of incapacity, during which a will does not kick in.
In addition to allowing you to retain control during incapacity, trusts are also instrumental in avoiding the costs associated with probate. The larger and more complex your farm is, the more expensive the process of probate will likely be. Assets transferred through a trust, however, are not subject to probate. Additionally the decedent will have already paid most of the costs associated with a trust when he or she established it.
For expert assistance in planning for your farm, contact us at (626) 696-3145.
