A farm or ranch transition plan typically includes at least some of the following insurance and financial products.
Products for Farm Transition Planning
In many farming operations, only one or two children of the next generation may be actively engaged in the farming operations. Using proceeds from a life insurance policy to equalize your estate may be a cost effective way of transitioning your farming operation to the next generation, while still leaving your desired bequest to the non-active children you have.
Many farm operations desire for their operations to transition to the next generation, but struggle to find the adequate resources to do so. One solution is annuity, which can provide the income you need to maintain your life style during the transition years, while allowing for more of the operational income to be passed on to the next generation.
One of the main reasons farming operations fail to make it to the next generation is the cost of long-term care, which can force the sale of land and equipment to pay the bills. One way to combat the high costs associated with long-term care is to have a policy to cover those potential costs.
Every now and then farmers face bad years, crops produce poorly, regulations change, and equipment breaks down. Having mutual funds set aside to protect against those potentially bad years is one way to help your financial situation. Mutual funds may also make it easier to transition your operations to the next generation when the time is right.