Protecting Your Legacy: Estate Planning in Agriculture

As an estate planning attorney with deep roots in the agricultural industry, I’ve seen firsthand how vital it is for farmers and ranchers to carefully consider how their assets and operations will be handled after their time. Agricultural estate planning is nuanced and goes beyond basic legal documents and tax strategies—it's about safeguarding the legacy you've worked tirelessly to build and ensuring it continues for generations to come.

For a lot of ag families, the land isn’t just an asset—it’s identity, history, and the backbone of generational wealth. But without a solid estate plan in place, that legacy can unravel fast. You’re not just risking tax consequences—you’re risking the continuity of the entire operation.

Ag estates come with a unique set of challenges. Beyond bank accounts and stock portfolios, we’re talking land, equipment, livestock, sometimes even intellectual property. These assets are usually tied up in the business and hard to divide without disrupting how things run. And while many folks assume estate taxes don’t apply anymore, that’s not always true in agriculture. We’ve all heard “land rich, cash poor” and with land values climbing, more farm families are crossing into taxable territory than they realize.

Add in the complexity of multiple heirs—some who want to stay involved, some who don’t—and you’ve got a recipe for conflict if things aren’t clearly mapped out. That’s why ag estate planning has to go beyond just legal documents and tax strategy. It has to be practical. It has to be honest. And it has to work for your family, not just on paper, but in real life.

1. Succession Planning: Keeping the Operation Moving

Succession is the heart of agricultural estate planning. If you want the operation to continue, you need more than good intentions, you need a clear, written plan. Who’s taking the reins? Are they ready? And how do you make sure the transition doesn’t blow up family dynamics?

If one or more of your kids wants to stay in the business, identify who’s stepping into what role, and back it up with the right legal tools. That could include everything from buy-sell agreements to transition timelines to financing terms. You also need to think about how you’ll handle non-farming heirs. Equal isn’t always fair, and fair isn’t always easy, but ignoring the issue invites conflict that could quite literally cost you the farm.

2. Estate Tax Exposure: Land-Rich, Cash-Poor Is Still a Problem

Don’t assume estate taxes won’t apply just because exemptions are high. In agriculture, rising land values have quietly pushed a lot of operations into taxable territory. The result? A hefty tax bill that your heirs may not be prepared to pay, especially if they’re short on liquid assets.

Without a plan, they might be forced to sell land or equipment just to keep up. Fortunately, with some strategic moves, you can reduce the burden and protect the operation.

Common tools include:

• Revocable or irrevocable trusts to remove assets from your estate;

• Conservation easements to reduce land valuation;

• Gifting strategies that make use of annual exclusions and lifetime limits;

• Transfer on death deeds for smoother ownership transitions.

The right combination depends on your goals, family, and asset mix—but ignoring the issue isn’t an option.

3. Legal Structures That Work for Ag

Tax planning is one thing, but structure matters too. For many families, setting up a legal entity like a family limited partnership (FLP) or limited liability company (LLC) can streamline ownership, protect the operation from outside claims, and make succession much less chaotic.

Farm-specific trusts are also worth considering. They allow you to transfer ownership without going through probate and grant you more control over how and when assets pass to the next generation. Trusts offer flexibility, privacy, and customization that a basic will simply can’t.

If you’ve got a complex mix of land, equipment, and multiple heirs, a trust or entity might not just be helpful—it might be essential.

4. Contingency Planning: If You’re Out of Commission

Let’s be honest; farming and ranching are physically demanding, and none of us are guaranteed good health forever. If you’re sidelined by illness or injury, what happens to the operation?

Every estate plan should include contingency tools like:

• A durable power of attorney to authorize someone you trust to handle finances and business operations;

• A medical power of attorney and advance healthcare directives to guide health decisions;

• Clear short-term protocols for who steps in and what decisions they’re authorized to make.

Power favors the prepared. Planning ahead doesn’t just protect the business—it protects your family from having to guess what you’d want in a crisis.

5. Family Conversations: Don’t Skip This Part

Legal documents can only go so far if your family doesn’t know they exist. If you want your plan to function smoothly, communication matters.

Have the hard conversations. Be honest about your decisions. Talk through your reasoning, your goals, and what you hope will happen after you’re gone. These discussions can prevent resentment, misaligned expectations, and expensive disputes down the road.

You don’t need everyone to agree, but you do need everyone to understand. And the time to start that process is now.

In our world, Estate planning isn’t just about avoiding probate or minimizing taxes. It’s about protecting the operation, preserving your values, and giving the next generation a real chance to succeed. Work with professionals who understand agriculture. Revisit your plan as your family and your business evolve. Most importantly, don’t wait until there’s a crisis to start thinking about the future; take care of business now to protect your land and your legacy.