FAQs
Financial planning is a complex, confusing, and often sensitive topic with many moving parts. Below are a few of the questions we hear most often from our clients and friends:
Why do I need an advisor?
Only 30% of family farms survive into the second generation, and just 12% reach the third1. The primary reason is the absence of a proactive plan. Estate taxes, unclear ownership structures, and lack of coordination between legal, tax, and financial advisors are the most common failure points. Poor communication among stakeholders can also be a problem. We address all of these through high-level, comprehensive planning that starts well before a transition is needed.
What does Farm Legacy Advisors do?
We specialize in comprehensive financial planning for farmers, ranchers, and agricultural business owners. Our focus areas include farm succession planning, estate planning, tax-efficient land transitions, investment management, and retirement income planning, all tailored to the unique complexities of agricultural operations.
I already have a CPA/attorney/lender/advisor. Why should I speak with you?
Coordination is central to what we do. We work alongside your existing professionals to ensure your legal, tax, and financial strategies are fully aligned and act as a catalyst to get things done. Usually, we are also able to bring new ideas to the table that fit perfectly within your plan. It’s good to have a full team on your side.
Can you help me reduce my taxes?
We use a cross-disciplinary approach that spans investment, estate, tax, and legal strategy. As part of this, we have many tools and techniques designed to limit your tax exposure and save you and your family money that we can explore with you and your licensed CPA. However, not every strategy is right for every situation. That is why we work with you and to determine your goals and opportunities. Every plan is custom-built to your unique situation.
What other value can you bring to me?
We offer investment management, farm succession and exit planning, agricultural estate planning, tax strategy coordination, retirement income planning, life insurance and risk management, and coordination with your CPA, attorney, and lender. Our goal is a fully integrated plan where the pieces make sense together, rather than piecemeal advice that doesn’t consider your entire situation.
What is farm succession and exit planning, and when should I start?
Farm succession and exit planning is the process of transferring ownership, management, and financial control of your agricultural operation, whether to family members, key employees, or a third-party buyer. The worst time to start is after something bad happens. The earlier you start, the more tools are available to minimize taxes and protect relationships. Some of our happiest clients began this process well before they thought they needed to.
Where are you located?
Our core team is based in California and Colorado. Additionally, we are familiar with state laws nationwide through our work with clients across the country, and we are backed by a national design team that we are very proud of with significant experience in all 50 states.
Are all meetings in person?
Not necessarily. We have clients all over the country, so we are accustomed to holding meetings virtually or via phone. We also travel to see clients and are happy to host at our offices.
Is the first meeting free?
Yes. Our introductory meeting is complimentary. We use it to learn more about you, tell you about us, and see if there is an opportunity for us to bring value to you. There is no obligation.
I like my current investments. Can I keep them if I work with you?
Yes, of course. As part of our process, we will evaluate your existing holdings and investment strategy to determine if they are producing maximum value for you.
How are you compensated?
Transparency is important to us. Initially, we are compensated through a clearly stated planning cost. Then, we can be paid on anything you choose to implement as part of your plan. We will always explain exactly how fees work before you decide to move forward – no surprises.
1USDA NASS. (2015, March 17). Family Farms are the Focus of New Agricultural Census Data. https://www.usda.gov/media/press-releases/2015/03/17/family-farms-are-focus-newagriculture-census-data and Baker, R. F. (2020, January 14). Farm Estate Planning. https://www.myopenadvisors.com/farm-estate-planning