Free Resource
Three Estate Planning Mistakes Farmers & Ranchers Make and How to Avoid Them
Your farm is more than a business. It’s a way of life worth protecting. Here are the pitfalls that put that way of life at risk.
Farming or ranching is more than a means of livelihood. It’s about preserving a legacy and a unique way of life. Unfortunately, many farmers and ranchers never get around to making an estate plan. The farm or ranch that’s been passed down for generations ends up being sold and converted to non-agricultural use, cutting the legacy short and ending the family’s way of life for good.
This Isn't Just a Farming Problem
Farmers and ranchers aren’t the only ones who put off planning. Business owners, parents, and families of all kinds avoid making or updating their estate plans for many of the same reasons. The mistakes below apply to anyone with complex assets, family dynamics, or a legacy they want to protect.
Mistake #1
Failing to Plan at All
How to Avoid This
There are more options available than most people realize. The key is working with a team of advisors who understand the nuances: attorneys, accountants, bankers, insurance specialists, and financial advisors. The right team can help you see a clear path forward, even when your situation feels complicated.
You don’t have to have all the answers before you start. You just have to start.
Mistake #2
Relying on Joint Ownership
Many people, farmers and ranchers included, believe the simplest way to plan their estate and avoid probate is to own property in joint names with family members. On the surface, it seems logical. But it often creates more problems than it solves.
For farm families specifically, farmland or ranch property that’s jointly owned and enrolled in USDA programs may result in subsidies being left on the table. And beyond that, joint ownership means giving up control of your real estate. Unlike other planning options, joint ownership can be difficult and expensive to undo, with real tax consequences along the way.
How to Avoid This
Holding real estate in the name of a business entity (like a corporation, partnership, or LLC) or a trust is almost always a better path. These structures allow you to maximize subsidies, minimize liability, and retain control of your property.
Whether you’re a farmer, a rancher, or someone with investment properties or a family business, the right entity structure gives you flexibility that joint ownership simply can’t.
Mistake #3
Overlooking Liquidity Needs
Incapacity and death are expensive, and they often require cash to cover the costs. But farmland, farming equipment, personal residences, automobiles, and other personal property are all illiquid. You can’t easily turn them into cash when you need to.
Without planning ahead for immediate and long-term cash needs, families end up in a position where they have to sell land and equipment quickly, often for far less than those assets are worth.
How to Avoid This
There are several ways to plan for debt and expenses after incapacity or death. Financial advisors, bankers, and insurance professionals can help with securing lines of credit and the right amount of disability insurance, long-term care insurance, and life insurance.
On the legal side, a trusts and estates attorney can assist by creating life insurance trusts, business entities, and more complex strategies like part gift/part sale arrangements in exchange for a note or private annuity. The goal is to make sure your family never has to sell the farm to pay the bills.
Your Legacy Deserves a Plan
Farmers and ranchers live a different lifestyle, and that lifestyle calls for specialized estate planning solutions. But they’re not alone. Everyone from business owners to parents has unique planning needs that deserve attention.
A team of advisors, including attorneys, accountants, bankers, insurance professionals, and financial advisors, can help you create and maintain a plan that preserves your legacy and the way of life your family has built.
⚖️
Attorney
Estate plans, trusts & entities
📈
Accountant
Tax planning & compliance
🏦
Banker
Life, disability & LTC
🛡
Insurance
Life, disability & LTC
💰
Financial Advisor
Investments & retirement
Our firm has experience supporting farmers, ranchers, and families of all kinds in achieving their estate planning goals. If any of these mistakes hit close to home, we’d welcome the chance to talk through your situation.
Related Resources
Explore Our Full Farm Family Planning Guide
Learn about succession planning, estate tax strategies, heir equalization, land protection, and more.
Ready to Protect Your Farm and Your Family?
Every family’s situation is different. Let’s talk about yours.
Attorney Advertising. This website is for informational purposes only and does not constitute legal advice. Each family’s situation is unique and requires personalized legal guidance. Viewing this website does not create an attorney-client relationship.