By: H. Malcolm Pippin

Last Will and Testament:  A Last Will and Testament not only provides who receives your assets upon your death, it also more importantly provides for the guardians of your children should you die while any of your children are minors. Even though most of us recognize the need for having a Last Will and Testament, more than half of us do not have one. The excuses for not having one go from putting it off to a deep-rooted fear of death. Of course, not having a Last Will and Testament is not going to prevent the inevitable from happening. The only difference is whether you will have taken care of your assets and family properly after you are gone. Dying without a will, which is called “intestate,” can have tragic consequences which can be avoided by having even the most basic of wills prepared.

Just as important as preparing the Will is keeping you Will updated based upon changes in your life. We recommend that you should always review your Will to see if it needs updating when certain key changes take place, including:

·         Changes to your family or loved ones, such as the birth of grandchildren, a divorce or a marriage, the coming of age of children, and death of a family member.

·         Changes in assets, such as properties, businesses, or retirement plans.

·         Acquisition of heirlooms

·         Changes in your life and / or  in your children’s lives that may affect who you have named to serve as Guardian of any minor children of yours upon your death;

·         Changes in estate and tax law so you can ensure that you and your heirs are able to get the most out of your Will.

·         Changes in personal circumstances. You might want to include specific wishes on your funeral for example. Or perhaps you want to change the executor of your Will to reflect changes in relationships.

Advanced Directive : Sometimes referred to as a Living Will, this legal document allows you to  control whether you want, in the event your treating physician indicates that your condition is terminal, to be kept alive by life sustaining equipment, nutrition and hydration. After you prepare this document it is wise to provide a copy to your treating physician, local hospital, and loved ones so that they know of your wishes. Simply put, it does no good unless your loved ones and medical professionals are aware of your wishes.

Durable Power of Attorney for Health Care:  This document allows you to appoint others to make health care related decisions on your behalf, if you are unable to do so yourself. For example, if you are in a car accident, are elderly and perhaps have dementia or simply are not thinking clearly. Typically clients appoint their spouses, children or loved one as their agents, but anyone can serve. Again, like the Advanced Directive discussed above, after you prepare this document it is wise to provide a copy to your treating physician, local hospital, and loved ones so they know of your wishes.

Durable Power of Attorney for Financial:  This document allows others to act on your behalf regarding financial and legal matters. For example, let’s say, God forbid, you are in a terrible car accident and remain in the hospital for months on end. Who pays your bills? Who signs your tax returns? Who signs other legal documents?  There are two kinds – a general power of attorney and a “springing” power of attorney that only becomes effective if you are medically certified as being incapable of managing your personal and business affairs.  Your legal advisor can explain the differences in more depth. As with the other documents mentioned herein, this document is crucial to protect you and your loved ones in the event you can no longer manage your personal or business affairs.

The Pippin Law firm has several attorneys that practice in the estate planning arena. Feel free to call the office at 701-572-5544 if you have any questions or would like to schedule a consultation with any of our estate planning attorneys.

This article is only intended to provide general information and does in any way constitute legal advice. Please contact your legal professional to assist you in these matters.

By: Kaitlin DeCrescente

A family farm is a business. But, when it's time to pass the torch, we often treat the transfer differently than we would, say, a family restaurant. With over 70% of the nation's farms set to change hands in the next 15 years, it's essential for farm families to ensure a sound plan is in place.

1. Treat it Like a Business

Although a family farm is no doubt a sentimental place that may have been in the family for generations, it's also someone's livelihood. If a family member is willing to take over operations of the farm, they need to have inside knowledge of the operation. Think of it this way: If you owned a restaurant and your child worked there growing up, you wouldn't expect him or her to take over the entire restaurant without some training. Likewise, if you want to set up the farm to thrive for generations to come, your successor needs to be involved in the financial, record-keeping, and general decision-making aspects of the operation. This can be difficult in a family dynamic, where members of the younger generation might inherently feel their role is "child/grandchild" rather than "business partner." Still, once the decision is made that an heir will be taking over, for the success of the farm, his or her role has to essentially be that of a senior vice president of the business.

2. "Fair" doesn't always mean "equal"

The default plan for many farm families is to transfer ownership of the farmland to the next generation in equal shares. This outwardly seems to be the fair option. After all, why wouldn't each child get a share in the property that's been in the family for years? However, if the farm is operated solely by one of the heirs, it might not make sense for the non-farming heirs to inherit a share of the farmland. Such a transfer can have the effect of essentially forcing a partnership on the next generation. If you do want both farming and non-farming heirs to have a share in the land, it's a good idea to have a plan in place for sharing profits and losses of the farming operation to ensure that "equal" IS fair.

3. Get it in writing

You may have a silent agreement as to who will operate the farm in the future, but there are too many details to leave your plan unwritten. Who will have record title to the land itself? How will title be held? What about the machinery and equipment? When will the actual transfer take place? Does your current estate plan reflect all of these wishes? Don't leave the next generation to guess about the answers to these questions. Several farming seasons could pass before these issues are all fully resolved if legal action is required.

4. Failing to plan is planning to fail

"My kids all get along. They can agree on who gets what once I'm gone." Unfortunately, these are famous last words in estate planning. It may feel morbid to discuss what will happen when you figuratively "buy the farm." However, ignoring the topic is only likely to create discord and conflict among remaining family members. Generally, the last thing anyone wants is for family relationships to fall apart due to fights over an estate. Yet this frequently happens in situations where parents fail to plan. When you throw a family farm into the mix, the situation only worsens. The odds are slim that the farm will continue to operate successfully in the midst of a bitter estate dispute.

5. Don't be overwhelmed!

The process of planning can seem daunting. It's not something that can be completed in an afternoon. It may need to be dynamic as time passes. There are several resources to help guide you in the right direction for you and your family. University extension offices nationwide offer succession planning assistance. Likewise, insurance companies, accountants, and attorneys may also offer guidance. The International Farm Transition Network has put on workshops nationwide training a wide array of individuals in all fields as certified farm succession coordinators. Additional resources will likely continue to become available as farm families and the professionals who support them continue to recognize the increasing need for assistance in the farm transition process.

This article is only intended to provide general information and does in any way constitute legal advice. Please contact your legal professional to assist you in these matters.