Transferring the Farm - University of Minnesota Extension Fact Sheet Series

Review

This series of ten fact sheets can be used to help agents get a good overview of the issues and help them facilitate preliminary farm transfer/succession discussions.  It is also an excellent resource to provide clientele as a guide and background information. 

 

• Fact Sheet 1 (Preparing to Transfer the Farm Business) provides a list of 24 questions that can help assess the parties’ readiness to start the transfer discussion. 
• Fact sheet 2 (Farming Together as a Transfer Strategy) discusses the issues of working together in the initial phase. 
• Fact Sheet 3 (Using Farm Partnerships or Corporations to Transfer Assets) discusses the pros and cons of partnerships and corporations. It does not cover LLCs. There is some tax discussion, so it may be dated.
• Fact Sheet 4 (Transferring Livestock and Machinery) focuses on the self-employment tax and income tax when transferring these assets.  Some tax numbers may need to be updated. 
• Fact Sheet 5 (Should You Sell Your Real Estate?) covers ways to sell land, tax information may be dated. 
• Fact Sheet 6 (Gifting Farm Assets) provides details on gifting and the tax consequences.
• Fact Sheet 7 (Major Tax Considerations When Transferring Assets) discusses capital gains issues – needs reviewing for tax updates. 
• Fact Sheet 8 (Treatment of Heirs in the Transfer Process) discusses ways to protect the on-farm heirs and ideas on being fair to off-farm heirs. 
• Fact Sheet 9 (Financial Help for Beginning Minnesota Farmers) does have some information that is state specific, but the second page provides information on applying for a loan.
• Fact Sheet 10 (Developing A Written Transfer Plan) discusses what should be in the plan, and professionals who can help. 

Overall, good basic ideas but user must be aware of any tax updates and state specific programs.