forest landowner legacy planning
Post on 21-Oct-2014
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Steps for beginning the legacy planning process and resources for family communications about inheriting land.TRANSCRIPT
Legacy PlanningCarrying Stewardship Forward: Love Your Land? Make A Plan.
Presentation prepared by:The Cornell and Penn State
Legacy Planning Team
Who Owns Our Forests?
There are more than 750,000 private forest landowners* in PennsylvaniaThey manage nearly 70% of the state’s forestsMost forest landowners (over 65%) own less than 10 acres
* Who own at least one acre
The future of Pennsylvania’s forests depends on the stewardship of private forests, given threats from its fragmentation and development
Forest Stewardship…is the wise management and use of our forest resources to ensure their health and productivity for years to come
Most landowners express a commitment to the land and want to be “good” stewards
They do this by caring for the soil, water, plants, and wildlife
Ownership objectives may take years to achieve
The Longer View: Legacy Planning• With myriad reasons for owning forestland (often not
tied to producing income), sometimes it’s difficult for landowners to think beyond their tenure.
• While current owners cannot control what happens on the land beyond their tenure, they can take steps to guide its stewardship
Thus, forest stewardship depends on the creation of a legacy plan to guide future management decisions
The Threat of Ownership Changes One of the most persistent threats to land stewardship happens when it changes ownership
Changes in ownership often result in management and use decisions that do not reflect the previous owner’s goals
• we often see major activities such as timber harvesting, subdivision, and selling of parcels of land to recoup costs
There are ways to influence how stewardship of the land continues
Legacy Planning: Intention vs. ActionWhile 80% of forest owners plan to keep forestland in the family…
• Only 40% have discussed the plan with their children• Only 35% of children are involved with the current
forest plan
Even fewer landowners have a plan in place
Land and MoneyWithout a plan, land may be lost in the future to
• Development• Conversion to non-forest uses• Unplanned sale of timber to generate
cash for estate taxes• Land sale to pay estate taxes
Money concerns are the #1 reason why land may not stay within family
• For example, heirs can’t afford taxes or current owners need retirement income or funds for nursing or long-term care
How Many of You Have…• A long-term forest management plan?
• A will?
• An estate plan?
• A business plan that will survive your death, such as a
limited liability company?
• Discussed your long-term goals with your spouse, your
children or your heirs?
• Groomed a successor?
Legacy Planning
Leaving a LegacyPlanning for the Future
Caring for the Land
…is carrying forest stewardship into the future
Implementation of an Estate Plan
Communication of Your Plans
Long-term Stewardship
= Legacy Planning
A Formula for the Future
Long-Term Stewardship• Many landowners have a plan
in their heads, but few have a written plan
• Legacy planning extends your plan beyond your tenure
Family or Future Land ManagersBeneficiaries are a part of the long-term strategic plan for your woodlands
• Share and refine the stewardship plan with family members and/or other successor(s)
• Create a cooperative environment where everyone “buys-in” to the plan’s goals
Legacy PlanningLegacy planning is comprised of land stewardship, ongoing communications with the next owner(s), and estate planning
The written plan contains the legal documents and planning tools necessary to achieve your vision
It is a strategic planning process to achieve a collective vision for the property and to create a smooth transition between you and future owners• Together, you determine how the land will be
managed
Estate PlanningEstate planning uses the legal tools available to ensure your legacy plan is successfully carried out
A will is one of those tools, specifying how your estate, the total of all your assets, will be distributed
Implementation of an Estate Plan
Communication of Your Plans
Long-term Stewardship
=Legacy Planning
Legacy planning extends your plan beyond your tenure
The Ten Steps in Legacy Planning
1. Commit
2. Gather
3. Record
4. Discuss
5. Seek assistance
6. Consult
7. Research
8. Develop
9. Review
10. Create
Step 1: Make a Commitment….to your land and its management. It’s never too late nor too early to involve future owners in the use, management, and enjoyment of your land.
Image courtesy of Carl Martin, PAFS
Step 2: Gather Information
• Topographic maps of the property
• Other property information (like acreage details, zoning, roads)
• Stewardship action plans• Records of previous activities
(like harvests and plantings)• Lists of engaged individuals and
companies who have worked on the property.
about your land and other assets in preparation for a meeting with your family or other beneficiaries of your land.
Step 3: Write Down Your Interests and Develop Your Goals
….for the property based on your values.
Ask Yourself:• What do I love about my woodlands?• What do I want for the future of my
woodlands?
Write down what you value; make it concrete for yourself
Step 4: Discuss Goals with Your Family or Future HeirsDevelop a shared vision for the future of the land.
Ask your heirs what they love about and hope will happen to the land
‒ Listen and learn
Articulate what you love about and hope will happen to your forestland
Develop a shared vision
What Should I Be Communicating?Ask Yourself:• What do I want for the future of my woodlands? • What do I hope for the land after I am gone?
Then ask the same questions of your beneficiaries
The intent is to understand the values and visions for the land held by those you hope will carry your stewardship plan forward. Develop shared goals for the future of the land.
Getting Communication Started Some Resources that may help you:• Legacy Planning Case Study Videos• Forest Story Cards• Ties to the Land • Your Land, Your Legacy
The conversation happens over time.
It is a process, not a single meeting.
There are more complete references for these resources in the ‘Know Your Legacy Planning Resources’ handout
Step 5: Seek Help From a Natural Resources Professional
Start with a forest consultant who can create a stewardship action plan for your woodland.
State service foresters are also a good starting place. They can provide information and resources, but cannot do any of the work for you.
Step 6: Consult with Qualified Legal/Financial ProfessionalsExamples:
‒ a tax or estate-planning attorney ‒ an accountant‒ a financial/investment advisor ‒ a land trust specialist
• Find professionals who are competent and understand your situation as a forest landowner. • Ask for referrals from friends, neighbors, or people who belong to your
local forest owner association.• Be sure that your goals for the land are clear before turning to these
professionals.
Step 7: Access Unbiased, Research-based Information
Contact sources such as Cooperative Extension. Ask questions and connect with other landowners through regional and county woodland owner groups.Learn as much as you can about your land
Step 8: Develop a Business Model that will allow the next owner to keep the property intact and functional.
Potential options:• Limited Liability Company (LLC)• Conservation easement• Family Limited Partnership (FLP)• Other (refer to the handout)
Step 9: Discuss your options and record important decisionsWrite it down!! Don’t keep it in your head.Have an ongoing written record, and make sure that you keep your plan up-to-date.Your records will also help future owners know what’s been done and what you intended.
Step 10: Create Fond MemoriesGet your family and friends out to work and have fun on the property.
A personal connection to the land is the foundation upon which all good stewardship occurs.
The Ten Steps in Legacy Planning
1. Commit
2. Gather
3. Record
4. Discuss
5. Seek assistance
6. Consult
7. Research
8. Develop
9. Review
10. Create
Legacy Planning Team• Heirs or Future Owners• Consulting Forester• Financial or Investment Advisor• Attorney• Accountant
Web resources – search using keywords such as:
• “Legacy Planning”• “Legacy /Forest Estate Planning”• “Legacy Planning Services”• “Legacy Advisors”• “Legacy Wills”
Website ResourcesCornell Cooperative Extension has created an online forum for communication between landowners and resources for your use: SuccessionPlanning.Ning.com
• Read about other landowner experiences• Ask questions and connect with other landowners• View a directory of estate planning professionals recommended by other
landowners
And Penn State Extension has articles and similar resources available at: extension.psu.edu/legacy
What Can You Do?Articulate what you love about and hope will happen to your forestland
Write down what you valueMake it concrete for yourself
Ask your heirs what they love about and hope will happen to the land
Listen and learn
What Can You Do?• Seek out resources and tools that can help
you make a plan• Learn about options and ask for advice
from those who have successfully planned• Communicate with those you expect to
carry your stewardship forward• Work together to:
‒ Create a plan of action and implement it
‒ Decide on alternatives‒ Enjoy the land ‒ Create memories that will
extend long into the future
Thoughts and Discussion?
• http://SuccessionPlanning.Ning.com• http://extension.psu.edu/legacy
For more information, visit:
The Penn State and Cornell Legacy Planning TeamShorna Allred
Associate ProfessorCornell U. Dept. of Natural Resources
Peter SmallidgeSenior Extension Associate
Cornell U. Dept. of Natural Resources
Gary GoffSenior Extension Associate
Cornell U. Dept. of Natural Resources
Maureen MullenExtension Aide
Cornell U. Dept. of Natural Resources
Jim FinleyProfessor Forest Resources
Penn State U. Dept. of Ecosystem Science and Management
Allyson MuthForest Stewardship Program
AssociatePenn State U. Dept. of Ecosystem
Science and Management
Andrew PurringtonDoctoral Candidate
Penn State U. Dept. of Recreation, Park, and Tourism Management