Planning the Future: Barry and Jean’s Farm Transition Journey
A Growing Concern for the Future
Barry and Jean were both a little over 50 when they started thinking about the future of their farm. Their main question: how can they be fair with all of their children while supporting them in their own families and career endeavours?
Farm life isn’t as simple as it used to be. Today, there are Occupational Health and Safety, inventory, and Agsafe requirements to consider - not to mention profitability. Barry and Jean wanted to plan for an easier life for themselves while ensuring their children’s interests were fulfilled.
Navigating Complex Family Dynamics
Barry and Jean have three children: one living off the farm and working locally, another away interstate at university, and the third completing a trade in the city. Their concerns were varied:
Would all the kids want to come back to the farm?
Is the farm big enough to support everyone?
What if none of the kids wanted to live the farm life?
On top of that, Barry and Jean wanted to avoid the challenges they faced when their farm was passed to them following a parent’s death. While farm life has provided them the opportunity to raise children in the country, work together, and contribute to the food chain, they wanted a better and more structured transition for their own children - whatever paths they might choose.
Motivations Beyond Money
Barry and Jean were not driven by money, often saying they’re “happier with hectares than money.” However, after years of stewing on their decision and with some gentle nudges from their children no longer living on the farm, they were ready to ensure their legacy was passed on in the best possible way.
Their accountant emphasised the need for thought and planning, particularly to manage issues like Capital Gains Tax and fair distribution. Still, trusting a financial adviser was a big step for Barry and Jean, who had worked so hard for their farm.
Laying the Foundation
At our first meeting, I made it my priority to make Barry and Jean feel comfortable. I asked them to tell me their life story - how their journey began, the farm, and everything in between. This allowed us to build a solid foundation of understanding their current assets, income, and estate planning needs.
Their estate planning, untouched since their children were toddlers, became our starting point for discussing what comes next after farm life. While the discussions were emotional and, at times, confronting, Barry and Jean knew this was a necessary step toward their goals.
The Relief of Having a Plan
As with many of my farming clients, Barry and Jean felt an immediate sense of relief once they started voicing their thoughts aloud. Knowing that I would guide them through the process and take the workload off their shoulders made a significant difference.
I asked them key questions:
What has triggered this move for you?
What is your timeframe?
What are your goals?
After analysing their answers and discussing priorities, we held another meeting to address any missed topics. We also brought in their team - their accountant and lawyer - to collaborate on their retirement and wealth transition plan.
Building the Strategy
We then created a comprehensive strategy, a blueprint to guide the implementation of their plans. Barry and Jean’s goal was to move off the farm within five years. However, we knew some steps would need to be completed in stages over several years. This phased approach ensured their goals were achievable and sustainable.
Peace of Mind
With a solid plan in place, Barry and Jean were reassured that even in the worst-case scenario, their family’s future would be secure. The process provided them with immense relief, helping them declutter their lives and create a plan they felt was fair for all of their children.
As they put it, “We have our agronomist for the farm and Tam for our life.” That’s a comparison I’ll happily take!
Start Planning Your Farm Transition
If you’re ready to start discussing your farm transition and ensuring your family’s future, reach out for an initial chat. Together, we can create a roadmap to bring your goals to life.