FARM MANAGEMENT

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FARM MANAGEMENT

• WK 10-5 SUCESSION MANAGEMENTPART 2

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FARM MANAGEMENT CONCEPTS

• WK 1 INTRODUCTION
• WK 2 ECONOMICS RECORDS
• WK 3 BUDGETS
• WK 4 LINEAR PROGRAMMING
• WK 5 CAPITAL BUDGETING TIMELINESS
• WK 6 MACHINERY MANAGEMENT
• WK 7 LAND MANAGEMENT
• WK 8 CREDIT MANAGEMENT
• WK 9 HUMAN RESOURCE MAMAGEMENT
• WK 10 SUCCESSION MANAGEMENT

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TEXT BOOK READINGS ON HUMAN RESOURCE MANAGEMENT

• FARM MANAGEMENT
• RESOURCE BOOK
• PG 63 - 64D

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LEARNING OBJECTIVES

• AFTER COMPLETING THIS LESSON, THE STUDENT SHOULD
  BE ABLE TO
• 1.
• 2.
• 3.
• 4.
• 5.
• 6.

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WK 10 SUCCESSION MANAGEMENT

• DISCUSSION POINTS
• I. WHILE LIVING
• A. CONSIDERATIONS
• B. FAMILY LIFE CYCLESC. BUSINESS TRANSFER
  PHASES
• D. TRANSFER AGREEMENTS
• II. AFTER DEATH
• A. ESTATE PLANNING TOOLS B. WRITING A WILL
• C. CHANGING YOUR ESTATE PLAN

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WK 10 SUCCESSION MANAGEMENT

• ESTATE PLANNING OBJECTIVES

• PROVIDE FOR YOUNG SURVIORS
• PROVIDE FOR SURVIORS RETIREMENT
• TREAT CHILDREN FAIRLY
• MAINTAIN A PROFITABLE BUSINESS
• PROVIDE CASH TO PAY COSTS
• MINIMIZE COSTS
• A. ESTATE TAXESB. LEGAL FEES
• C. COURT COSTS
• 7. MAXIMIZE FAMILY SATISFACTION

Darrel Acker, Oh St Ag Econ Newsletter, Summer
1993
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WK 10 SUCCESSION MANAGEMENT

• THREE LEVELS OF CONCERN

A. IF ONE PARENT DIES
B. IF BOTH PARENTS DIE
1. WHAT DO YOU DO WITH THE CHILDREN
2. WHAT DO YOU DO WITH THE CHILDRENS PROPERTY
C. IF THE WHOLE FAMILY DIES
YOU CANT DIE WITHOUT A PLAN....
..... IF YOU DO NOT MAKE A PLAN .........
...... THE STATE OF OHIO DOES!!!
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SELECTING SUCCESION PLANNING TOOLS
WK 10 SUCCESSION MANAGEMENT

• 1. VALUE OF THE GROSS ESTATE
• 2. AMOUNT OF TAX LIABILITY
• 3. TYPES OF PROPERTY
• 4. HEALTH LIFE EXPECTANCY
• 5. FINANCIAL NEEDS
• 6. TITLE TO THE PROPERTIES
• 7. COMPETENCY OF BENEFICIARIES
• 8. MARGINAL TAX LAW
• 9. STATE LAW

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ESTATE PLANNING TOOLS
WK 10 SUCCESSION MANAGEMENT

• TRUSTS
• LIVING
• TESTAMENTARY
• GIFTS
• LIFE INSURANCE
• JOINT TENANCY
• ANNUITIES
• WILLS

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BASIC WILL PROVISIONS

• 1. TYPEWRITTEN OR COMPUTER PRINTED
• 2. NAME OF PERSON CLEARLY STATED IN WILL
• 3. CURRENT WILL REVOKES ALL PREVIOUS WILLS
• 4. MUST BE AT LEAST 18
• 5. MUST OF SOUND MIND BODY
• 6. THE MAKER MUST SIGN DATE THE WILL
• 7. SIGNATURE MUST BE WITNESS BY A LEAST TWO
  QUALIFIED INDIVIDUALS. SOME STATES REQUIRE 3

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WILL PROVISIONS
WK 10 SUCCESSION MANAGEMENT

• 1. APPOINT GUARDIAN FOR CHILDREN
• 2. MAKE SPECIFIC BEQUESTS
• 3. NAME ALTERNATIVE BENEFICIARIES
• 4. USE PERCENTS NOT ABSOLUTE S
• 5. RESIDUAL CLAUSE
• 6. DIASTER CLAUSE

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WILL PROCEDURES
WK 10 SUCCESSION MANAGEMENT

• APPOINT YOUNGER PERSON AS EXECUTOR
• A. Based on ability, not relationship B.
  Big, complicated estates may need a pro.
• 2. CHOOSE YOUNGER WITINESSES
• 3. BENEFICIARIES SHOULD NOT BE WTINESSES
• 4. MAKE WILL EASY TO FINE
• 5. DESTROY OLD WILLS
• 6. PERIODICALLY UP DATE WILLS

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UDDATE YOUR WILL
WK 10 SUCCESSION MANAGEMENT

• 1. CHANGE IN MARTIAL STATUS
• 2. CHANGE IN FAMILY SIZE
• 3. CHANGE IN FINANCIAL SITUTATION
• 4. SPOUSE INHERTS PROPERTY
• 5. BENEFICIARY DIES
• 6. EXECUTOR UNABLE TO SERVE
• 7. MOVE TO A DIFFERENT STATE