Have you thought about what will happen to your farm when you retire? Have you had the conversation with your children about whether they want to continue on farm, or do they plan to sell the farm once you’re gone? Some of these questions might make you uncomfortable, but what’s more uncomfortable is the knowledge that you’ve left it too late to reach your pre-retirement goals. Our farm accountants in Warrnambool understand the variety of factors that can affect just how comfortable your retirement can be. With our advice you can ensure that your assets end up in the right hands and that you get to enjoy the fruits of your labour. The sooner you start planning – the better!
Every family dynamic is different and plans need to be put in place on a case by case basis. There is no ‘one size fits all’ plan. Your plan should be a written document that sets out any tax and / or stamp duty implications, how control is passed on, who it is passed onto, plus anything else specific to your family.
Your Warrnambool farm accountants will need to gain a good understanding of your farming business and outline what is possible. The way your business is structured, the size of your land holdings and the way it is held are very important. Do you operate as a partnership and directly own your land? Is it owned by your incorporated business? Or is it owned and rented to you by your superfund? Each comes with its own set of considerations and challenges.
It’s important to consider the needs of off-farm siblings, as there is potential for conflict if off-farm siblings are not catered for in a will. In some cases, there may not be a next generation wanting to take on the farm and the plan may need to focus on how best to divide and sell the business assets. With so many competing and complicating considerations; the advice of your farm accountant in Warrnambool can be invaluable in realising the most important consideration – your wishes.
The planning process involves listing possible options and potential costs. As your farm accountant, we will not (and we should not) tell you what option to choose – it’s always your decision. We will, however, present you with all the information you need to make the best choice for your business and your family. With significant assets at stake, generally built up over generations, not planning for the transfer of farm land and stock to the next generation, or sale to a third party, could be very costly.