WHAT DO WE DO WITH THE RANCH?   TRANSITION PLAN

As a Texas land owner when do you begin to formulate a plan, for when the time comes, to distribute your land and asset to others?  There is a simple answer; it’s never too early nor is it ever too late.  The major mistake people make is never starting the process.

The first step with any plan is to define and focus on your goals first.  These need to be clear before proceeding further.  Keep in mind these are your assets.  When your goals have been determined, then consider the wishes and concerns of those who will benefit from your transition.

For most Texas landowners there are two life events that proceed the division of assets to heirs; retirement and death.

RETIREMENT:  The most important thing to consider are your needs during your retirement years.  Do you still require income generated from operations and/or leases?    Do your future desires for your property line up with those of your heirs?  What legacy do you want to leave for future generations?

DEATH:  The foremost thing to consider is the future for your surviving spouse and any dependents.  Are things in order in the case of an unexpected passing.

After determining your goals and needs it is important to seek out input from others:

• Anyone who shares ownership with you; spouse or business partners
• Heirs to discuss their interest and vision for the land.How many heirs do you have and what is each of their participation.  Note:  the more heirs there are the more complicated this process may become.
• Lawyer to provide advice about the legal implications of the land transition.Also to assure that your will and other documents are updated
• Accountant to discuss financial and tax advice.
• Financial/Investment planner to assure that you will be provided for during those golden years and that your dependents are not burdened during the transition and in the future

THE TRANSITION:  When the time comes landholders all hope that “the transition” proceeds as efficiently as possible.  If the land is a legacy ranch that has been in your family for generations or if the land has been a playground full of so many wonderful memories – there is a time when all Texas land owner will ask the questions; What do we do with the Ranch?

Ranch Connection is a Texas Land Brokerage – we do not provide advice to our clients about legal and financial investing/planning maters.

Ranch Connection is a full service Land and Ranch Real Estate Brokerage established in 1984.