Succession & Estate Planning for Fairness & Harmony
Farm succession planning is essential but complex. The first conversation can be difficult. By carefully analysing the farm business and talking to family members, a robust solution can be found which paves the way for both the family and the farm.
Call Patrick Mackarness on 0459 588 361
Sustaining families and farms
In a nutshell
- The largest asset in many farmers’ estates is the family farm – often over 80%.
- The thorniest question in many succession workouts is “Who will inherit the farm?”
- This need not be left to one child only.
- The farm has two components a.) Real Estate and b.) Stock, Plant & Equipment
- The farm real estate can, for example, be put into a trust and leased to the farming successor child.
- Provisions can be made for the farming child to buy out the other children over time.
- Rent can be to market levels and can move up and down with the profitability of farming. Leases need to be fair.
- This is not partnership farming.
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This structure is one of several that can solve farm succession challenges.
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The need for valuation & lease design skills is often overlooked.
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The foregoing points are not advice but an indication of a possible course of action which might bring peace and harmony to your family while allowing the farm business to prosper.
Who I am
- I am a Certified Practising Valuer with tertiary and post graduate qualifications in agriculture, forestry and rural estate management.
- I have over 40 years’ experience.
- I discreetly advise clients by addressing valuations from both the a.) Market Evidence and b.) Gross Margin Feasibility points of view.
- I am a rural land economist/valuer with lease design experience
- I work with you and your other advisers: lawyers, accountants, farm management consultants and succession planners.
MA, MAgric, MForest Eco Sc, Dip Rural Estate Mgmt, AAPI(CPV)
Frequently asked questions:-
No, rather, I recommend that you give it consideration. It is not a “silver bullet”. It can solve the problem of inequity but it needs to be carefully designed and administered
Yes, in certain cases this can be very successful. However, tenant selection and lease design and administration are critical.
Yes, in most cases, as it is of great value. I understand that this is a sensitive topic and that every family is different. I am always discreet, respectful and open-minded. Interviews are immensely helpful in developing advice and designing structures as well as explaining the leasing and syndication/trust process.
This varies according to the complexity of the case rather than the value of the property. I usually give estimates of fees or fixed quotes. The costs are usually not high.
All forms of Australian non-intensive agriculture. From time to time, I may recommend specialist farm advisors for certain farm types.
All of Australia. I operate remotely via Zoom or WhatsApp when necessary.