Released November 16, 2009
BLUE SPRINGS, Mo. – Small-business owners and farmers spend many hours running their business. They invest their life savings and may take out loans to make the business successful.
“Unfortunately, many of them fail to prepare for their retirement and for those they leave behind, so the farm is sold, or the business closes and the community has another empty storefront,” said Wayne Prewitt, University of Missouri Extension agribusiness specialist.
Estate planning can be as easy as having a will or when necessary, forming additional entities such as a trust to transfer ownership of a farm, land or business, Prewitt said.
“The first and most important reason is to ensure income and security for the owners or family of the farm or small business,” he said.
An estate plan can ensure that heirs are treated equitably, minimize taxes and settlement costs, and spell out transfer of the farm or family business. Plans also can include living wills, durable power of attorney and long-term care, Prewitt said.
“The most difficult aspect of creating an estate plan is deciding on the family goals and making the first trip to an attorney,” he said. “Sitting down with a spouse and family members seems to be the most difficult step for many people. Once someone takes the lead and starts open discussions then things fall into place fairly quickly.”
Discussions may become heated as issues and concerns are addressed, but it is always better to discuss goals and desires openly with everyone involved, Prewitt said.
With goals established, you will need an attorney who knows what tools will be required to create your estate plan. Prewitt cautions that not every attorney may have the expertise to create the legal documents necessary to meet your goals and desires in an estate plan.
“You may need to travel outside your community or county to find the attorney most qualified to address your particular situation,” he said.
For more information, contact your local MU Extension center. Information from MU Extension on a variety of personal and family finance topics is available at http://extension.missouri.edu/main/DisplayCategory.aspx?C=95.
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http://extension.missouri.edu/news/DisplayStory.aspx?N=589
Source: Wayne Prewitt, 417-448-2560
Editor: Milly Carter, 816-252-7717, carterm@missouri.edu
