your attorney as a team member - aaron esser

8/3/2019 Your Attorney as a Team Member - Aaron Esser

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YOUTH &FAMILIES

AGRICULTURE HEALTH ECONOMY ENVIRONMENT ENERGY COMMUNITIES

YOUR LAWYER AS A TEAMMEMBERWHAT DOES A LAWYER NEED TO KNOW

INFORMATION FROM PRESENTATION DESIGNED BY

ROBIN KLEMM, OSU JOHN FOUTS, WSUMARSHA GOETTING, MSU AARON ESSER, WSU

PRESENTED BY

AARON ESSER, WSUJanuary 17, 2008 Wenatchee, WA


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WELCOME

You are the steward of a legacy thathas a life of its own and a value beyondyou


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WELCOME

Who best can decide the next chapterin your family farm business?

o Youo Uncle Sam


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IF YOU WANT THE JOB, THAN YOU MUST

Not ignore problems

Keep communication lines open

Get help from advisors Develop a sensible plan

Ask the hard questions


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STEPS IN ESTATE PLANNING

1. Initiate the discussion

2. Take stock of the present

3. Develop objectives4. Choose professional advisors

5. Consider alternatives

6. Implement the plan7. Review and modify


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SUCCESSION PLANNING TEAM

ISNOT A SOLITARY EXPERIENCE Heirs

Key non-family managers

Advisors Accountant

Lawyer

Financial planner

Insurance specialist

Planning facilitator


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CHOOSING A LAWYER

YES NO

Have you worked with a lawyer on estate planning?

YES NO

Have you worked with a lawyer on anything?


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CHOOSING A LAWYER


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CHOOSING A LAWYER


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CHOOSING A LAWYER

Farm succession planning is aspecialized area,

your current lawyer may not havethe training or expertise to give youthe help you need

They may think they know what theyre

talking about but they dont necessarily


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CHOOSING A LAWYER

Lawyer should have significantexperience with multi-generationalestate planning, family businessstructures, estate and trust tax issues

Look for one who has at least 10 years of

experience in estate planning!


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CHOOSING A LAWYER

Expertise

Experience

Trust Your past experiences

Recommendations

Do your research First free consultation

WORD -

of-

MOUTH


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WORD-of-MOUTH

Family members

Trusted friend or neighbor

Accountant


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FIRST FREE CONSULTATION

This is a job interview!

Experience

Costsmay be some negotiation! Get it in writing

Dont be afraid to interview multiple

candidates

Multiple generations Gut instinct


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PREPARING FOR A MEETING WITH YOUR LAWYER

Im an Agronomist!

Seed rates

Herbicide rates Fertilizer rates

Seed date

Variety

Tillage history Crop history

Herbicide application history.

I too want

a list!


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Gives you clarity and confidence

Saves time, money, and frustration

Enables your lawyer to best serveyou

Ensures the final product iscomplete and what youwant

Allows you both to get right to thework of succession planning


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1.

2.

3.


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PREPARATION

Personal information

Names

Birth dates Addresses

Occupations

Social security numbers


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PREPARATION

Real estate

Type of property

Size

Location

Description

Year acquired

Cost

How titled

Market value


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PREPARATION

Personal property (cost, value,ownership, how titled) Vehicles

Machinery Livestock

Crop inventory

Home furnishings

Jewelry Art

Antiques

Personal items


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PREPARTATION

Bank accounts

Name and location of institution

Account numbers

Exact names on accounts Balances

How titled on signature card


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PREPARATION

Stock, bonds and other securities

Description

When purchased Number

Exact name of owner

Face value

Costs


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PREPARATION

Life insurance

Company and address

Policy number Face amount and supplemental values

Cash value and any outstanding policyloan

Exact names of owner, insured andbeneficiary


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EXACT NAME!


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PREPARATION

Trusts

Type

Location

Trustee

Who established

Exact name of beneficiary

Value of trust property


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PREPARATION

Notes, mortgages and other accountsreceivable

Description Amount

Year acquired

Person who owes you

Repayment plan


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PREPARATION

Mortgages and other real estate debts

Description

Creditor

Due date

Remaining balance

Individual or joint responsibility?

Insured?


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PREPARATION

Liens against personal property

Description

Creditor Due date

Remaining balance

Individual or joint responsibility?

Insured?


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PREPARATION

Other personal liabilities

Unsecured notes

Notes endorsed

Real estate taxes

Personal property taxes

State and federal taxes

Unsettled claims creditor, due date,remaining balance, individual or jointresponsibility?, insured?


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PREPARATION

Retirement benefits Pensions

Profit sharing

Deferred compensation Individual retirement accounts

Social security

Qualified domestic relation orders

Amount invested Accrued benefits

Annual benefits

Death benefits


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PREPARATION

Other financial information Income last year

Current income

Salary

Qualified domestic relations orders Retirement income

Annuities

Rents

Interest Bonuses

Dividends

Trust

Capital gains


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PREPARATION

Taxable gifts

Amounts

When made


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PREPARATION

Location of important documents Wills

Trust documents

Deeds Insurance policies

Stock and bonds

Financial statements

Income tax returns (last 5 years) Buy/sell agreements

Conservation and easement agreements


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PREPARATION

Location of important documents(continued) Contracts, partnerships and corporation

agreements

Gift tax returns Profit sharing plans Marriage dissolution decrees Pre- and post-nuptial agreements

Employment contracts Pension benefits Power of attorney Long-term leases


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RELEVANT INFORMATION

Family chart (ages, marriages, specialneeds)

Farm operations chart

Who owns the farm & in what proportions Organizational chart (if more than farm

business)

Gifting & asset transfer strategies

Long term care policies

List of consultants and advisors and contactinfo.

Working statement of net worth


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COMMUNICATION

Have you asked each family memberwhere they would like to see the familyfarm in 10, 20 years?

What succession topics are easiest todiscuss with family members?

What topics are the hardest?

Are you willing to get them on thetable?

Do you need a facilitator to help you?


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THINK, PONDER, REFLECT

How do you want to adjust/equalize estateplanning?

What are your intentions for transfersale,

gifting? What are the skill sets of my children,

nieces, nephews, etc. who want to continueoperating the farm? How do you groom

them for ownership? Are there grandchildren that might be

interested in the farm, and if so, how do youmanage the interim until they are ready?


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THINK, PONDER, REFLECT

You will want to plan:

Retirement specifics--$, activities, andownership?

Transition

Transfer of ownership

Timetable for transition Contingency (for death, divorce,

disability)


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DRAFT YOUR IDEAS

NOTHING FANCY, JUST A STARTING PLACE

What is your vision for your familyfarm?

How and when do you want to retire? Which family members are identified

for succession?

What do you want for the non-successors?

What is important to you about thesuccession process?


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KEYS TO A GOOD WORKING RELATIONSHIP WITH YOUR LAWYER

Plan ahead

Be prepared Communicate

Trust


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TRUST

Cannot be acquired, but only can begiven

Questions?

your attorney as a team member - aaron esser

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