Brown & Associates - Attorneys & Counselors at Law, P.L.L.C.

"ESTATE, BUSINESS TRANSITION PLANNING FOR FARMS, SMALL BUSINESSES"
(1/21/01)

For those of you who didn't make it out to the KNID Agri-Fest 2001 event at the Garfield County Fairgrounds this past weekend, you missed a great opportunity to rub elbows with some of the greatest people you can meet.

Gary Brown and I were fortunate to attend as presenters. KNID and Autry Tech invited us to present two seminars each on Friday and Saturday. The first seminar each day was titled "Estate Planning for Farmers and Ranchers: What to Expect in 2001." The second seminar was "Passing Down the Family Farm: Special Issues faced by Family Operated Farms."

What we told those farmers and ranchers in attendance is equally applicable to any small business person who is getting up in years, is close to retirement, and is concerned about how to pass on a legacy to his or her children or other relatives--or just wants to get out of the business with skin intact.

Okay, I can hear you muttering the background. "Why is he telling us this NOW--the seminars were last weekend. How's that help us?" Good question, but I have my answer ready.

Would you believe Gary and I are going to be offering a 3-day seminar at Autry Tech which will address each and every one of these issues. The seminars are each three hours in length and will be offered FROM 6 TO 9 P.M. February 26; February 28; and March 6.

The first night's seminar will focus on the basics: wills, probate, minor children, powers of attorney and introductory materials you need to plan for a non-taxable estate or for your children's future needs.

The second night will focus on advanced planning: revocable living trusts, tax planning, life insurance, retirement planning, and planning for the elderly.

The third night is new this year. It deals with passing down the family farm or any family business. We decided to add this additional program because of all the questions and requests we have received at our past seminars. The questions were always beyond what we had time to cover in just two nights, so we decided to add a third night.

If you have attended estate planning seminars in the past and feel you have a good understanding of basic estate planning, you can just come to Night Two. If you understand tax planning and the use of revocable trusts, but you have a small business, come to Night Three. You can attend any combination of the classes. The cost is minimal. Autry Tech needs to recoup its expenses so it charges $15.00 for one night, $25.00 for two nights, and $40.00 for all three nights. Mix and max to your heart's content.

Since we are on the topic of retirement and business transition planning, let's talk about what you should be doing now to prepare yourself.

The first thing you need to do is project "way ahead" when you start looking at retirement expenses. By that I mean you should be looking at 20 to 25 years or longer of retired life--and expenses. Median life expectancies are now 83 for men and 87 for women. That means at least half of all Americans will live longer than they ever have before.

Because of this, you need to make sure your retirement plans (and your finances) are going to be there for the long haul.

Most of the financial counselors with whom I've talked are advising their clients to plan to live until they are 100 years old. I know this sounds like forever to you right now, but my family just lost a dear friend who was 108. Would you believe she lived alone and was going strong right up to the end. She's not the only one, either, so this isn't as radical a thought as it might at first appear.

If you are one of the lucky ones, your "retirement" could last for 30, 35, even 40 years or longer.

And don't forget the effects of inflation. Just look what is happening with propane and fuel oil now. If you're retired and spending $60,000 a year now, you will probably be spending $100,000 or more in the not so distant future.

There are two kinds of people in this world. Those who plan for their eventual retirement and death and those who don't. If you are making plans and sorting out your finances and estate plans, congratulations. If you aren't, shame on you. Time is rapidly passing you by and the longer you wait, the greater chance you won't get it done at all. Pity those you leave behind who will have to come in and try to clean up the mess after you're gone.

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