Farm Table says:
Powerpoint presentation from Wheatley & Sons.
Some key points include:
Reasons for no succession plan:
- Owner often poor listener and communicator
- Owner unable to face retirement
- Longer livety of owners and control syndrome
- Too busy
- Family not appropriate
What does succession cost?
- Cost of setting up plan
- Cost of reviewing plan
What does it cost if don’t have a plan?
- Erosion of wealth through disputes and litigation between family members.
- Size of business reduced to meet needs of claimants.
- Loss of productivity.
- Family relationships harmed or destroyed.
- Missing opportunities.
- Creating tax liabilities that could have been avoided.
Partnership rollovers
- Use of double shuffle to get over livestock and plant to successors at written down value.
- To use this strategy, one party must continue to own 25% or more of livestock.
- Rollover for plant does not require 25% continuing interest.
