Presentation Transcript

1. Succession Planning for Forest Land Owners March 9, 2013 Presented by: 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com
2. C. Dennis Brislawn, Jr. J.D. Principal in The Private Client Law Group Member of a Washington Pioneer Family that homesteaded in Omak & Sprague (Wheat Growers) 25 years as an estate planning attorney with experience in family business transitions including Farms, Dairies, Forest lands and Vineyards 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com
3. What Will Be Covered Today (30 min) Planning Process Setting Goals Planning Process Tools to consider that help: keep land in forestry provide income reduce taxes maintain family harmony March 19 (3 Hours) Detailed discussion of planning tools Designing your plan Creating the team to implement the plan 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com
4. Challenges for Forest Owners I/we Love the Land “Never harvest my trees!!” Accepting that Equal is not Fair Equity vs. Control Family Communications Do the kids all want/need the same thing? Should they? Can they? 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com
5. Farm & Timber Land Quadrants Passive Ownership of Land Active Farm/Timber Operation Higher Net Worth Lower Net Worth 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com
6. Start by Identifying Your Goals Generate Cash Flow Avoid or Reduce Taxes Preserve the Land as is Family Legacy Family Harmony 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com
7. Tools of Farm & Forest Transfer Business Entities LLCs Corporations Business Agreements Leases Management Contracts Buy-Sells Estate Disability Tools GDPOA vs. Living Trust Health Care Documents Liquidity Issues Care Issues Death & Tax Planning Will vs. Living Trust Tax Exemption Planning Remarriage Planning Liquidity Issues Special Conservation Easements Dynasty Protection Trusts 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com
8. Tools of Farm & Forest Transfer Financial Tools Protecting the Land Charitable Leverage Conservation Easements Income tax deduction Estate tax reduction Perpetuate land use Agreements Land use leases Management contracts Sale Selling to family Selling to 3rd party Value… Rights Development Grazing Crop production, harvest 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com
9. Some Stories Timber & Taxes Pasture of Perfection Dairy Farm Family 3rd generation, same land One kid involved in business One kid living at home with the grandchildren One kid, professional, in city 50 year forest grower Mature trees Facing estate taxation Need for income for health, other Desire to pass on land and legacy
10. Planned Outcomes Take care of mom / dad first Maintain family harmony, unity Create / manage cash flow Perpetuate desired use of land Reduce fees, costs, & taxes 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com
11. Start Charting Your Course Identify what you want. Inventory Your Values, State Your Goals. Consider the Tools of Farm & Timber Transfer. Inventory your assets. Consider them in light of your goals with help of your Team… attorney, CPA, financial planner, insurance agent, business consultant to identify and examine the tools that might work. Remember: Failing to plan… means planning to fail. THANKS! 5555 Lakeview Drive, Suite 201 Kirkland, WA 98033 (425) 803-9500 | office@brislawnlofton.com