Estate Planning or Succession Planning: Why Every Farm or Ranch Family Needs Both
When it comes to the future of the family farm or ranch, most people know they should have a plan in place — but too many believe a simple will or possibly a living trust is enough to keep things running smoothly through a transition. The truth is, transitioning a farm or ranch is more complicated than dividing up a bank account or a house. It’s an active family business, a legacy, and often a big part of your family’s identity. That’s why every farm family needs both an estate plan and a succession plan — and they aren’t the same thing.
What’s the Difference?
Estate planning is about deciding who will inherit your assets when you pass away. It usually includes:
A will and/or trust to hold or distribute property
Financial powers of attorney
Healthcare directives
Estate planning is a process whereby:
You control your property while you are alive and well;
You take care of yourself and your loved ones if you become disabled;
You give what you want to whom you want, when you want and the way you want; and
You do so with the lowest possible amount of taxes, professional fees, and court costs.
Estate planning is essential for every family — it makes sure your wishes are clear and helps your loved ones avoid unnecessary legal headaches and tax burdens.
Succession planning by contrast is a process that:
Protects the ongoing viability of the agricultural operation;
Provides for the orderly transition of the agricultural operation to new ownership; and
Preserves family harmony.
Succession planning answers an entirely different question: Who will actually run the farm or ranch — and how will that transition happen? Among other things, a good succession plan looks at:
Who will manage day-to-day operations now and in the future.
How ownership will transfer over time — during your lifetime and/or at death;
Whether the farm or ranch will be sold in part or kept entirely in the family;
How to handle heirs who aren’t involved in the farm; and
How to prepare the next generation to take over successfully
How They Work Together
Estate planning is a part of your succession plan, but it’s not the succession plan. For example, you might leave the farm to one child in your will — but your succession plan explains when and how they’ll step into management, how siblings will be treated fairly, and what happens if plans change. Often the estate plan serves as a backstop to make sure the succession plan is fulfilled if transition was not completed in your lifetime.
Without this extra layer of planning, families can run into costly problems:
Land may need to be sold to buy out heirs who aren’t farming.
Siblings may fight over who controls the business.
Taxes could force a sale at the worst possible time.
A strong succession plan avoids surprises, preserves family relationships, and helps ensure the farm or ranch stays productive for the next generation.
Farm Succession Takes Time
Good succession planning isn’t something you can wrap up in a weekend. It’s a process that can take years — and starting early makes all the difference. Planning is like a funnel with options narrowing as time passes. Talking openly with your family, working with trusted advisors, and putting clear legal agreements in place can help you retire on your terms and set up the next generation for success.
Don’t leave your family’s success to chance. If you have an estate plan but no succession plan, now is the time to fix that gap. If you don’t have either, don’t wait until there’s an emergency to start these conversations. Your farm or ranch is more than just land — it’s a legacy worth protecting.
Need help getting started? We help farm and ranch families build clear, practical plans that protect what you’ve worked so hard to build — and help keep the farm in the family for generations to come.
This post is for informational purposes only and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Nothing herein creates an attorney-client relationship between Hallock & Hallock and the reader.