Estate Planning for Farmers

Many farms are extensive, and to manage them, you need to have the right implements and farm inputs, which cost a lot. This is why many farmers go in for loans to handle their farm operations.
If you don’t plan your estate well, you will end up losing all your valuable assets, the land included.
Additionally, the estate is usually subject to taxes, and yet all your money is tied up in the farm, which forces your family to sell of the assets to settle these concerns.

Let us look at the various approaches to estate planning when you are a farmer.

Farmer’s Will
This is the first basic document that you need to consider as a farmer. In this regard, you need to make sure that you come up with the right will that passes your property to the beneficiaries.
The will should designate various portions of the estate to the heirs. Make sure you list all your property and then assign each person what you think they deserve.
If you have farms spread across the state, this is the right time to list them and their value. Put locations against each farm and the size as well. Don’t leave out any farm however small it is.
If you decide to leave part of the farm to a minor, then you need to determine the person that becomes the guardian of the property for the kid.

Durable Power of Attorney (POA)

When working on a farm, you are at great risk from different things:

• Infections from animals and other related hazards.
• Accidents as a result of equipment and machinery.
• Falls and heat.
• Noise.
• Musculoskeletal injuries.

Due to this, you aren’t sure what will happen next – you might find yourself incapacitated with the inability to make decisions on your own.
If you become incapacitated without a durable POA, then you run the risk of having the court assign someone to make decisions on your behalf. The person will manage the property for you and make medical decisions as well.
This is not a bad thing at all, the only downside is that process of appointing the guardian takes time and is very expensive. Additionally, you aren’t sure that the person chosen by the court will handle your estate the way you need it to be.
This is why it is imperative that you enlist the services of an estate planning attorney to help you come up with a durable POA.

Advance Heath Care Directive

What happens when you get injured while in the field and you can’t make medical decisions the way you want to? Well, for your information, recent medical advancements have made it possible for doctors to prolong your life, but would you love the idea?
The advance medical directives come with issues because:

• We all have different moral and religious beliefs.
• The cost of prolonging your life might be limiting.

The pain we go through when we undergo medical procedures such as chemotherapy.
You need to come up with this document and then have a copy with your lawyer and attending physician. Take time to understand which medical procedures you are exposed to and which ones you desire.

Living Will

This is a type of agreement that you come up with when you are in a state where you know your death is imminent. The document directs your doctor to avoid some treatments that sustain life.
Take time to list down the medical procedures that you care about and those that you don’t care about at all.
When you decide to go with a medical procedure, then you need to confirm for how long you want it to be performed. Here are a few areas you might need to cover in the will:

• Using artificial hydration and nutrition.
• Administering pain medication to reduce pain.
• Use of breathing machines and transplants.

As a farmer, you have the ability to plan your estate just like any other business out there. However, you need to be careful so that you don’t end up losing your farm to taxes and debts. Work with an estate planning lawyer to come up with the best plan.