Succession planning is often regarded by family owned businesses to be the most important but difficult process they will undertake. Succession planning can be an extremely emotional and challenging time for all concerned, however, if properly managed it can be a very positive and rewarding process. We have experienced counsellors with a proven track record in successful succession planning.

There are many challenges when handing over the family business to the next generation. Farm equity is often the default superannuation plan for farmers, and financing for the next generation wishing to buy the farm can be difficult. Fair distribution of inheritable assets to multiple siblings can be an issue, likewise for small family businesses. Understanding the business structure, how land and assets can be transferred to the next generation, financial and legal implications, family needs and desires are extremely important aspects to comprehend and be considered prior to actuating a succession plan.

Sometimes an unexpected change of circumstances or a natural disaster can mean the farm is no longer viable or it can not provided for retirement needs and the needs of the next generation. This can be a very distressing situation to deal with as the family farm or business has both sentimental and economic value to all involved.

Our experienced rural financial counsellors can assist family farms and business prepare for a succession plan.

The pre-succession planning process may involve multiple individual discussions to understand the expectations and needs of each family member, facilitated family meetings, seeking of professional advice and or, it may even need negotiation with family members especially when family relationships are strained or have broken down.

Our role in this process is variable depending on the needs of the family and the complexity of the individual situation and may involve some of the following:

• Identifying the need for succession planning
• Assisting with profit and loss statements, balance sheets, assets and liabilities
• Identifying and gathering the appropriate documentation
• Facilitating individual and family meetings
• Assisting with mediation and clarifying the issues
• Developing options and explaining the process
• Providing referrals to professional advisors to seek legal and financial advice

If you seek assistance and professional advice on succession planning and your retirement needs long before you reach retirement age, this will often avoid succession processes being a difficult and stressful time.