Succession and Estate Planning for Farm and Ranch - Part 1 (Feb. 25, 2021 Webinar)

Department of Agricultural Economics Author

02/26/2021 Added

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The first session of this two-part series on succession and estate planning will focus on why farmers and ranchers do not like to plan, how to avoid the “circle of inaction," and other roadblocks to starting the process — presented so you can be prepared to overcome them. The importance of family communication will also be discussed, along with strategies for working together to script a successful transition plan. With: Allan Vyhnalek, Nebraska Extension Educator for Farm and Ranch Succession.

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[00:00:46.200]Allan Vyhnalek: Okay welcome everyone and we're still waiting for a few people to get online, because when you open up the video room or the room people it takes a minute for everybody kind of get going so good afternoon we'll get started here in a minute.
[00:00:59.400]Allan Vyhnalek: we're in the first part of the estate planning was day succession planning today for the hour and we'll be back next Thursday for that hour to on march forth and in the meantime, if you want to sit in on our or listen to the.
[00:01:13.710]Allan Vyhnalek: Following program crop insurance decisions that's a Monday special Monday webinar again go to farm de una de de register for that.
[00:01:22.230]Allan Vyhnalek: So that's what's going on there i'd also like to point out that the nat nebraska rural response hotline is a great resource for ag professionals.
[00:01:32.460]Allan Vyhnalek: Across the state, providing mental health counseling information regarding legal assistance financial clinics mediation and more.
[00:01:39.930]Allan Vyhnalek: hotlines for toll free number is zero 71 800-464-0258 it also have a wealth of resources related to stress and wellness and rural rural wellness all one word.us now.edu, and that is on your website, excuse me, that is, on the page that is showing on your screen right now should be anyway.
[00:02:02.250]Allan Vyhnalek: So that's that's the announcements, I need to make, and I think we're ready to start my.
[00:02:08.850]Allan Vyhnalek: program what happened to my screen hang on Dr share screen again I bet I do here we go.
[00:02:20.430]Allan Vyhnalek: All right.
[00:02:22.020]Allan Vyhnalek: Okay, so.
[00:02:25.740]Allan Vyhnalek: Okay Andy I think Ryan, I think you're going to Ryan you go through and make sure that everyone's muted Is that correct.
[00:02:31.890]Allan Vyhnalek: I think.
[00:02:32.400]Ryan Evans: We go.
[00:02:33.090]Allan Vyhnalek: Thank you all right very good hi so I now know, I come to university extension educator and for the last well now almost four years i'm.
[00:02:43.050]Allan Vyhnalek: Working on farm succession farm and ranch succession and transition from the ag ECON department affiliate hall here on East campus.
[00:02:50.220]Allan Vyhnalek: that's my email address that's how to get Ahold of me there's my phone number and there's the webpage I have a whole bunch of stuff.
[00:02:56.430]Allan Vyhnalek: posted to the web page has some articles that have been written by myself and others, plus it has my videos today i'm going to give you about an hour.
[00:03:06.780]Allan Vyhnalek: of my two and a half hour long program and so understand that that that there's more listen to, if you want to and it said that why pay down that debt website and that.
[00:03:19.740]Allan Vyhnalek: You you can listen to as much or as little as you want to and let's see i'm trying to there we go.
[00:03:27.690]Allan Vyhnalek: There we go and so that that's what you can find their website and that's how you get Ahold of me.
[00:03:32.520]Allan Vyhnalek: I am not working, every day at the office i'm some day, working from home and so go ahead and leave a phone message at that number on the screen and I will listen to the message within usually within 12 hours 24 hours, and I will get back to you, so there you go.
[00:03:48.720]Allan Vyhnalek: And if you have questions along the way, just throw them into the chat where is the chatter I don't see the chat okay there's a chat right there.
[00:03:57.600]Allan Vyhnalek: Will sighs today me, yes, so slides from today will be made available to participants as soon as we get down to program I will send a slideshow of slide deck to Ryan.
[00:04:08.400]Allan Vyhnalek: And Ryan will post them on this host them on the same website and then, when when this is being recorded.
[00:04:14.640]Allan Vyhnalek: And the recording will be posted the website, to see if you see if you have anyone else that wants to watch this just just send them to that website, they can watch the recording me pull up the slides.
[00:04:26.280]Allan Vyhnalek: Today i'm speaking i'm going to get as much done as I can, in an hour i'm sure I have more than an hour's worth of stuff here, but I go get a rock through it as fast as I can, or, as well as I can.
[00:04:35.940]Allan Vyhnalek: And then next week i'm going to feature a guy named brandon Dirk Schneider who's a financial planner and a certified egg succession farm and sixth formers session coordinator.
[00:04:48.210]Allan Vyhnalek: And he's going to talk today i'm going to talk about the communications and what you gotta do to get started okay.
[00:04:54.780]Allan Vyhnalek: This whole process family communications also get started into success kind of figure out what's going to happen with the farm next or ranch next.
[00:05:02.490]Allan Vyhnalek: And the next week brandon we'll talk about some of the tools, you can use to make that happen, so I think the two two parts here is going to be helpful because we're covering a couple things it comes to cover it more in depth with the Ryan so topics week.
[00:05:16.710]Allan Vyhnalek: Okay, so let's go.
[00:05:19.470]Allan Vyhnalek: So today here's some of the things i'm going to talk about family why we don't plan down the communications, the whole concept of service is equal.
[00:05:26.460]Allan Vyhnalek: Negotiation have to create create more value and then you're assigning your homework assignments, and things to think about.
[00:05:33.810]Allan Vyhnalek: This is not at this these two parts series is not a substitute for actual state planning matter of fact.
[00:05:39.450]Allan Vyhnalek: don't assume anything Ryan and i've say your actual legally legally binding tweeted we're not saying anything legal i'm not a lawyer i'm not smart enough to be a lawyer.
[00:05:47.520]Allan Vyhnalek: But I hope that if you listen and kind of think through some stuff to do some planning ahead time we save you some time with your professional.
[00:05:54.240]Allan Vyhnalek: And with lawyers costing between two and $400 and $200 an hour and $500 an hour if I save you an hour to it's well worth you spending an hour with me so here's some of the stuff especially even to to thursday's in Rome.
[00:06:09.660]Allan Vyhnalek: So our farmers ever going to retire well here, and you risky Sir my survey 35% have some plans, good for them, and another 54% nine plus 24 plus 21.
[00:06:21.990]Allan Vyhnalek: Say they've never planned to fully retire from farming that's over half.
[00:06:26.370]Allan Vyhnalek: You look in ios numbers whoops do I put those numbers here, I was numbers will show the 78% plan to never fully retire in this service agent.
[00:06:36.360]Allan Vyhnalek: So why are we not wanting to retire and i'm not trying to say you should retire knock yourself out once you get up in the cab go do it, but why are we not wanting to do that well.
[00:06:45.690]Allan Vyhnalek: And then, have you identify the successor just over half said they have any of those they said it was it was a child, I always hear silence number 78% never fully plan to retire at 31% plus 47% 78% never fully plan to retire performing.
[00:06:59.790]Allan Vyhnalek: Why aren't we return well because it's a control issue as uber is that's older people love their control of the farm and to be true, some of us.
[00:07:10.410]Allan Vyhnalek: have our parents passed away, well, I still have a mother long this still with us and hope she's with us for a long time yet, but but.
[00:07:18.090]Allan Vyhnalek: We still have parents still in the fold, and in some cases, you know they're just standing story in nebraska from Dave dealer my predecessor was.
[00:07:26.340]Allan Vyhnalek: 65 year old comes up to Dave and says when is it appropriate to give control to your son of the farming operations, if your son's farms.
[00:07:36.000]Allan Vyhnalek: Dave asked the guy how old, are you 65 How would you send 30 but i'm not talking about him.
[00:07:43.080]Allan Vyhnalek: Well day goes what I don't understand he's no i'm talking about my 9092 year old Father when is it appropriate for him to give control the farmers, because the grand son a son had a 92 year old grandfather and get marching orders every day.
[00:07:56.280]Allan Vyhnalek: Controls huge for the older generation, so that just keep that in mind.
[00:08:01.530]Allan Vyhnalek: modern equivalent of a GPS during and all that stuff allows you to go longer.
[00:08:05.220]Allan Vyhnalek: Now you don't want to think about retirement, because you relate that to your own death row mortality you can't afford to retire that'd be sad news The good news is, you have a healthier longer life you don't delay retirement.
[00:08:15.990]Allan Vyhnalek: Now, if you notice my earlier science that 57% said, it has an assessor but here 55% say they don't have success.
[00:08:25.140]Allan Vyhnalek: So I, I know that my numbers in the survey we're small enough that I could have that kind of a margin of error and so i'm assuming about half the farmers have successes and have them.
[00:08:35.100]Allan Vyhnalek: If I talked to the bag bankers and some bag lenders and some other professionals that were performers that turns out to be about right about half the half successors.
[00:08:43.680]Allan Vyhnalek: And in just over half don't know what else they do, and I have talked to farmers and says, well, I don't want to go play cards to beer.
[00:08:52.710]Allan Vyhnalek: You know the tabori necessarily in retirement i'm not going to go to the coffee shop I don't even like coffee, I would go to husker football games in the fall but.
[00:09:01.590]Allan Vyhnalek: that's not even important anymore, and no offense Scott frost but that's not important and and anyway, the bottom line is, we can do we need to do better and.
[00:09:13.170]Allan Vyhnalek: We need to think about it, and so the bottom line is i'm not trying to embarrass anybody or chide anybody to think they need to retire.
[00:09:20.910]Allan Vyhnalek: But what happens to your stuff when you're gone because we haven't been able to avoid death yet we're all gonna die what happens torsten.
[00:09:30.750]Allan Vyhnalek: Unfortunate part is so much people don't have state plans in place, so therefore more often than not planning tends to tends to be diverted.
[00:09:38.790]Allan Vyhnalek: into different James a critical life event which occurs, which forces the family, to address the matter.
[00:09:45.930]Allan Vyhnalek: And so I look at that and I go wait a minute that's a research, study is telling me that, and more importantly.
[00:09:52.830]Allan Vyhnalek: How do families make decisions when you're under stress out suggest maybe they don't make good decisions under stress.
[00:09:59.850]Allan Vyhnalek: So let's let's get a plan together before that says there's great big catastrophic event, and we have all the stress.
[00:10:07.650]Allan Vyhnalek: And the debt debt will be a better decision take our time and good decision does better decision than waiting until you have catastrophe occur of some sort somebody passes away or something.
[00:10:18.750]Allan Vyhnalek: Whatever whatever happens.
[00:10:21.840]Allan Vyhnalek: We don't like to plan, because we assume it's complicated we don't like to plan because it's mental work and to be true if you talk to some lawyers is really taxing on your brain, because the bottom line is.
[00:10:37.200]Allan Vyhnalek: The lawyers, the lawyers use their own terminology their own version of English, and so they start talking about wills and pro baiting wills and they talk about.
[00:10:46.560]Allan Vyhnalek: you're doing trusts and llc and power of attorneys and estate planning, and all this stuff and it gets not English reduced to you, dealing with and it gets to be all confused in our mind and that becomes never work, and so we kind of want to push that off to the side, I think.
[00:11:02.160]Allan Vyhnalek: We don't want to think about death or talked about that, but more importantly i'm finding out that we don't want to plan because we're afraid to put a plan together now.
[00:11:09.810]Allan Vyhnalek: some point in time in the future 357 years now, the plan is going to change and guess things will change and you made the wrong plan and guess what you write.
[00:11:19.590]Allan Vyhnalek: Things will change 357 years now i'm that i'm not i'm not debating for a second, the bottom line is you put a plan together.
[00:11:28.080]Allan Vyhnalek: So, in case there's a great demise before it's planned there's something in place we don't have to deal with a catastrophic Lee.
[00:11:35.250]Allan Vyhnalek: But, more importantly, we put a plan together, and if the chasing circumstances change something changes in the family, you just change the plan.
[00:11:42.720]Allan Vyhnalek: Because cheaper to change the plan adjusted adapted to your situation than it is to have to die, and then have something wrong with the plan that's all i'm saying.
[00:11:52.230]Allan Vyhnalek: that's costs more money that'll be that'll be worse there's three types of playing, it has to go into most most ag careers and we only really talk about the first two.
[00:12:02.820]Allan Vyhnalek: So first type of planning, we need to have in place, ever since we're 18 years old, is your end of life plan or into life duncan's the end of life, what i'm talking about is.
[00:12:13.080]Allan Vyhnalek: Our attorney forums and the health care pharmacy.
[00:12:16.680]Allan Vyhnalek: Our future to healthcare poverty i'll start with that it just just gives the hospital and the doctors, the Director of the FBI cannot if i'm in capacity, do not respond for myself, then the health care power of attorney gives them directive of what we want to have happen to.
[00:12:32.310]Allan Vyhnalek: The other to power of attorneys is once for durable power of attorney so if i'm a capacity to person who has a durable power of attorney can take care of my business affairs when i'm gone.
[00:12:42.090]Allan Vyhnalek: And then the other one is to health care power of attorney and that's the person is designated to take care of my health care decisions.
[00:12:48.690]Allan Vyhnalek: If i'm incapacitated and he worked with that healthcare directive that the doctors and hospitals should have to figure out what's going to happen or not happen.
[00:12:57.900]Allan Vyhnalek: They can be the same person to durable power of attorney healthcare punish attorney can be the same person, but they don't have to.
[00:13:04.170]Allan Vyhnalek: write the second circle on this is your you need and you need all those end of life documents in place, ever since you're eight years old, so if you have a 20 year old kid and they don't have.
[00:13:12.630]Allan Vyhnalek: A will excuse me, the power of attorney forums in place guess what happens to them if they become incapacitated because of auto accident or whatever.
[00:13:21.030]Allan Vyhnalek: You can't as a parent go and go to work with the hospital the doctors on that because they're over 18 and so you'd have to go petition, the Court net all takes time now takes money, you have to be a lawyer, you know it's just it's just a mess.
[00:13:32.550]Allan Vyhnalek: So make sure they have those forms in place to.
[00:13:36.270]Allan Vyhnalek: A state planning the second circle lower left the state claims is just simply what happens by step when i'm done.
[00:13:44.280]Allan Vyhnalek: I usually use that usually to take care of that to a will.
[00:13:48.300]Allan Vyhnalek: or, in some cases, if we're passing to the farm on or assets on we may be putting in a trust, and it goes on.
[00:13:54.900]Allan Vyhnalek: Or we use a limited liability company or corporation to to push it into an llc to go to the next generation or or or other structures it doesn't matter the the state plan is just what happens to my stump when i'm not here.
[00:14:09.000]Allan Vyhnalek: And then the third part is the one that the third part, I think, maybe more important in terms of this discussion, because, quite honestly.
[00:14:17.760]Allan Vyhnalek: I finding the farmers don't think about the business session part very much.
[00:14:22.470]Allan Vyhnalek: If you're lucky enough to have somebody come to the forum to take over your business, what do you need to do to help them make sure that business survive what what structures, you can put in place to make sure they can.
[00:14:32.430]Allan Vyhnalek: keep going with their business, by the way, this is what brandon's going to talk about next week.
[00:14:38.130]Allan Vyhnalek: So it's like buy sell agreements it's things like long term lease agreements it's things like first Ryder fuses.
[00:14:45.540]Allan Vyhnalek: it's things like long term land contracts, whatever you do to be get that keep that next generation place that's what you want to have happen with that business succession plan.
[00:14:55.230]Allan Vyhnalek: that's the part we tend, we tend to do the first two circles right, we tend to not do that third circle rights mature you have that figured out for you.
[00:15:05.040]Allan Vyhnalek: What people get stuck in is just what I call myself I call it the circle been action to circle and action and starts in number one year, it says, I should have a plan everybody kind of understands that that's not hard to figure out.
[00:15:15.690]Allan Vyhnalek: Number two I go to a meteor me Lord, I would say this hour doesn't even really qualifies me, but if you come to my full to our two or three our dog and pony show the now it qualifies me but i'm not sure this is.
[00:15:27.420]Allan Vyhnalek: i'm teasing but you should go to meeting army lawyer number three complicated give me a headache I don't think about it anymore it's too complicated.
[00:15:35.370]Allan Vyhnalek: I want to think about how i'm going to read my towels on when I think about how what what righty corn i'm going to plan how much for lightning when you use i'm going to take care of the control control weeds.
[00:15:44.640]Allan Vyhnalek: and see you go into no no actions is time because you're too busy doing other stuff.
[00:15:49.020]Allan Vyhnalek: As you sit and that's number four spot I take no action at this time for three months to three years, how do I know that.
[00:15:57.450]Allan Vyhnalek: happened to meet you I will that I needed to have updated about 567 years ago and I kept putting it off putting it off putting it off.
[00:16:05.910]Allan Vyhnalek: Right well actually had it, it was about 10 years ago and it will I need updated and I put it off for five years until I finally got to I think i'd done about five years.
[00:16:13.800]Allan Vyhnalek: But you have to get out, you have to think about the sequencing mean i've heard, I should have a plan.
[00:16:21.150]Allan Vyhnalek: I go to a meeting or meet with a lawyer family needs to explore options that you have a family together is important, I think so everybody has a chance to speak.
[00:16:29.610]Allan Vyhnalek: options pick you guys succession plan put together, you get that done three days know, three weeks know.
[00:16:36.390]Allan Vyhnalek: it's getting it done three six months, yes, so make sure you just keep going sequentially through this and get this all pulled together it have this all set up so that you get it done by fourth of July celebration for.
[00:16:50.250]Allan Vyhnalek: If you don't if you don't and you just let it go and the kids get started working on this it'll be just like this chip chip, you can.
[00:17:03.030]Allan Vyhnalek: Come capuchin month capuchin monkeys experiment monkeys were treated differently, and you can see in this experiment one was given.
[00:17:12.150]Allan Vyhnalek: A great one was given a cucumber, and you can see how that works out for the monkeys and it will work out the same way, for your children if you don't give them a sense of what's fair and and that does not necessarily mean what's equal watching you'll know what i'm talking about whoops.
[00:17:30.450]Allan Vyhnalek: Look.
[00:17:34.740]see what happens.
[00:17:36.810]So she gives a rock to us that's the task and we give her a piece of to convention, he said the other one needs to give a rock to us.
[00:17:45.780]And that's what she does.
[00:17:48.150]And she gets a grape.
[00:17:51.180]and see to the other one sees that she gives a lot of us now gets again cucumber.
[00:18:15.330]She tests rock now against the wall needs to give it to us.
[00:18:20.580]And he gets.
[00:18:32.850]Allan Vyhnalek: Any PDF you don't think that that's an accurate depiction of what will happen when humans to.
[00:18:39.570]Allan Vyhnalek: You really haven't been around enough family so okay so it's a perception of equality and fairness, they were both getting a piece of food.
[00:18:46.650]Allan Vyhnalek: If they perform the task, but if they don't think it's fair, even though you know, I know, no more judgmental quit their.
[00:18:54.330]Allan Vyhnalek: Parents make lots of assumptions and they think they're going to be right they don't always turn out that way, and I want to talk about assumptions are one our businesses, our business we don't get she doesn't get shared with anyone.
[00:19:05.160]Allan Vyhnalek: and always too many old white guys, like myself, that if somebody brings up hey you should have an estate plan, they want to turn around and walk away.
[00:19:13.470]Allan Vyhnalek: And it's our old heritage in here in nebraska, especially in eastern nebraska that tends to be checked and I like his chin or it's Polish or it's German or you know, whatever strong's berbick Swedish all those all those European descent.
[00:19:29.940]Allan Vyhnalek: And if we don't want to talk about something we tend to just die just walk away no we don't want to deal with it we're not going to our business our business I don't share that way.
[00:19:38.820]Allan Vyhnalek: And the sad thing about that is sometimes you know they go to the grave with the plan in their head that they ever put it on these.
[00:19:47.190]Allan Vyhnalek: kids school, I think we need to do better than that virtual.
[00:19:50.250]Allan Vyhnalek: kids get along great now and i'll continue, even though on bond they're going to continue, but you know in fact of the matter is sometimes the parents are the glue that holds the kids together.
[00:19:59.070]Allan Vyhnalek: With parents gone then you'll have somebody starting to just stir the pot a little bit say hey this is worth lots of millions of dollars, maybe I should get my fair share and that's.
[00:20:11.370]Allan Vyhnalek: Interesting that creates problems.
[00:20:14.250]Allan Vyhnalek: Because Green is a powerful negative emotion to 10s of screwed things up, I know my children want to keep this acid in the family, even when we're gone some talking this one lady calls me up and she says i'm the executor my mom's a State mom just passed away.
[00:20:29.220]Allan Vyhnalek: A month ago, or so I take my mom to understand all this appointment and I took her there and in a way back home said hey drive by the farm and see everything school, so they drove by the form.
[00:20:39.390]Allan Vyhnalek: And then grandma says stop in a look at the farm and grandma says honor your the executor more than anything, I want this to stay in a family Look how how well it looks and how good it looks and how well it's been take care of and.
[00:20:54.150]Allan Vyhnalek: More than anything, keep that in the fam it's important to me that you keep that.
[00:21:00.510]Allan Vyhnalek: And the daughter says yeah i'm fine we're going to try and keep it the income off the rent is fine for us.
[00:21:08.790]Allan Vyhnalek: mom is a luck would have it mom passed away about to grandma passed away about two weeks later, the daughter is now the executor having to work with a brother and sister three in the family.
[00:21:18.120]Allan Vyhnalek: And, as it turned out one of the other two said yeah I want to keep the farm, but the other one, the third one said no, I need you to pay some bills and I would like to go on a trip, and so I want to cash on cash my now.
[00:21:30.930]Allan Vyhnalek: The other kids were farmers, and so there, there was not like cash laying around the other to to the wanted to keep it couldn't necessarily.
[00:21:38.550]Allan Vyhnalek: By the other one out because it was going to be too big, of a low financial load brick financial it current market prices so they end up having to sell the farm to get to the split.
[00:21:48.030]Allan Vyhnalek: So they didn't finish mom's wishes so that's the wish as an older generation, then you better make sure, as you put tools in place to make sure that happens.
[00:21:57.060]Allan Vyhnalek: And i'm not saying you have to I told that one of my workshops and somebody says well i'm not going to direct my kids to do that I said that's fine, but if you want that to happen that's important to you, then you have to be about that.
[00:22:09.090]Allan Vyhnalek: i'll be gone I don't care i'll be dead I don't care how my kids divided divided, however, they want well, if you want to start World War three with the kids.
[00:22:16.950]Allan Vyhnalek: go with them such terrible assumption, but if you want to start if you start the family feud just don't do anything I have four children, and even though I got one of them on the farm, I have to divide my assets exactly 25 cents each test or equally that's only fair we do.
[00:22:33.540]Allan Vyhnalek: So farmer comes up to me, once he says yeah i'm one of four kids I said i'm fine with mom dad i'm 60 years old i've been on the phone with mom and dad for 50 years.
[00:22:42.030]Allan Vyhnalek: dad passed away a couple years ago mom passed away earlier this year anyway, a month ago, we read the will.
[00:22:47.790]Allan Vyhnalek: And will says, even though i've been on a farm with mom and dad 50 years help them grow it and do the assets and help them by ground and help get more equipment, all this push things forward I get 25% because i'm want unfortunate.
[00:23:00.540]Allan Vyhnalek: Does that sound fair does that sound like he's been treated equitably for the sweat equity put into this thing, and I would maintain maybe not okay.
[00:23:10.590]Allan Vyhnalek: However, when it comes to situations like this the golden rule applies the golden rule says.
[00:23:18.030]Allan Vyhnalek: Not what we heard in church do unto others as others do unto you that that's not yet I mean that's the golden rule but that's not what i'm talking about the golden rule here is just simply.
[00:23:26.730]Allan Vyhnalek: You has the gold makes the rule so grandma grandpa grandma mom and dad wants they certainly can do that, we can't necessarily convince them of anything different okay.
[00:23:37.380]Allan Vyhnalek: But if they do that in this situation well this this man who's been there for 15 years and still wants to farm for a few more years because remember nobody wants to ever retire.
[00:23:47.520]Allan Vyhnalek: Oh, is he going to be able to continue farming I would submit if anyone the other three one out, he will not get too convenient for him because.
[00:23:55.440]Allan Vyhnalek: The cost of buying the other ones out will be just too great and is that that's what so my point is to this to matriarch and patriarch.
[00:24:04.020]Allan Vyhnalek: You can make it equal but you're farming operation may not continue if you want to farming operation continue, then you guys consider out how to make an equitable so that on farm kid for a son or daughter, or whatever that happens to be nephew nice i'm here.
[00:24:19.290]Allan Vyhnalek: They can state farm and some say someday Center daughter this lobby years unless that's notarized that's not true or false.
[00:24:29.340]Allan Vyhnalek: So so and so for parents Dickies can be good assumptions i'm not saying they're all they're all blow up in your face i'm telling you that more and i've heard stories where these do so don't assume anything.
[00:24:42.240]Allan Vyhnalek: First conversation about any State plans now who gets the south at your who gets the south quarter right who gets to whatever.
[00:24:48.540]Allan Vyhnalek: Who gets the anti tractor to shed the first conversation is when we get done with this talk about estate planning are we still going with family that should be the first conversation because we don't make that assumption should get that.
[00:25:01.020]Allan Vyhnalek: I already have one daughter in law and the families said I i'm not going to help with the with the auction you guys drag all that stuff out of the House and have the option here in front yard and then just send me my check and I don't know.
[00:25:14.280]Allan Vyhnalek: Well that's nice that's really, really been that person has committed to the family, she wants her money, and so you know let's know that ahead of time let's go and let's let's know what.
[00:25:23.760]Allan Vyhnalek: commitments and secondly don't start a discussion with the family or anyone.
[00:25:29.610]Allan Vyhnalek: Unless mom and dad the matriarch or patriarch grandpa grandma whoever happens to be on the same page because.
[00:25:34.860]Allan Vyhnalek: If grandpa things one thing he tells one child this and grandma thinks another thing if he tells one child that and now the children, and so I started to get split.
[00:25:43.530]Allan Vyhnalek: Then it's a it's a your your your your trouble you're you're you're you, you have a failed plan for you to start so just understand.
[00:25:54.960]Allan Vyhnalek: What is he what are your assets look like, at the end what begin with the end in mind, turning he is.
[00:25:59.430]Allan Vyhnalek: turning into keys my retirement on my retirement day was that operational like Am I returning you made to the next generation to an auctioneer director.
[00:26:06.210]Allan Vyhnalek: To kind of think about what that looks like first and i'm not saying you're retiring i'm just saying it's the last day that you can physically go do what you're doing or loud maybe chose retire that's fine too.
[00:26:16.800]Allan Vyhnalek: What do you do with the keys your operation where they're where they don't start with that vision, if you start with that, then you know how to do the rest of it, you go.
[00:26:26.100]Allan Vyhnalek: Successful track positions have that kind of vision, what does that future look like to you in a perfect world, I have talked to too many fathers, going so your son is he said he wants to farm or not I don't know I didn't ask you.
[00:26:42.180]Allan Vyhnalek: That answer you got it, you know you should have that family communication, so you know.
[00:26:47.370]Allan Vyhnalek: So, in your world was your alley very ending the business or you pass on your business, you are getting into a neighbor what's happening here somebody else taking over are you passing into an error okay.
[00:26:58.440]Allan Vyhnalek: Have that conversation with the family first know where you're at know where you want to go and kind of go with that in some cases.
[00:27:05.160]Allan Vyhnalek: were coming up with generation skipping techniques if if i'm best a farming Tom 7075 chances are my grandson might be old enough that is turtle grants so son or daughter so just know what that looks like.
[00:27:18.360]Allan Vyhnalek: Your transition has to have.
[00:27:21.750]Allan Vyhnalek: But what happens in your transition has to be based on what your goals are for different things, and so, for that older generation their goals are centered around where they live.
[00:27:31.140]Allan Vyhnalek: What money they need for retirement, because if you're like well I probably should use my own example, but if you like my mom dad to kind of waited to do some extensive travel until they until they're off the farm.
[00:27:41.760]Allan Vyhnalek: So you need cash to do that where's that cash that come from.
[00:27:44.940]Allan Vyhnalek: And, as it comes from the sale of the machinery, does it come from the sale livestock does come from the sale a piece of ground.
[00:27:50.730]Allan Vyhnalek: As they come from the rv rv leaving that farm that young person on fire, we don't leave the person on the floor for it that's that's our standard on.
[00:27:59.520]Allan Vyhnalek: where you live so so I just stories to reach out to tell i'm visiting with two couples and once the older couple of my mom dad you lose their kids.
[00:28:08.940]Allan Vyhnalek: And the kids say mom dad one thing I want to do is transitions we want to buy an acre are part of an acre off you at the farmstead there because we're going to build our House.
[00:28:19.590]Allan Vyhnalek: And we want our kids to be in that school districts because that's where they're going to be all the way to high school the kids were three and four two and four, you know just get ready to start.
[00:28:28.110]Allan Vyhnalek: Those ones just curious or at school, so you want to have that all outlined in mom and dad and grandpa grandma mom decorated with each other, go.
[00:28:34.860]Allan Vyhnalek: Wait a minute if you're really wanting to live here we kind of plan on just going to town and getting a different house and she just live in our House.
[00:28:43.170]Allan Vyhnalek: And then the uncomfortable silence begins, and you know, after a period of time I finally realized it's a reason the kid is one of the younger couple wanted to have dacre is because at the end of the day.
[00:28:55.200]Allan Vyhnalek: daughter in law, decided that place wasn't the House good enough, she wanted to have her own new House so.
[00:29:01.860]Allan Vyhnalek: But, but you know that's just a function of we didn't communicate, we never communicate, we never let anybody know what the expectations were so just make sure that's always clear all the time.
[00:29:11.850]Allan Vyhnalek: And you know the older generation needs to know what they're going to do about the spirit versus evil day.
[00:29:16.350]Allan Vyhnalek: And their what their contribution is to the operation to their operations going to continue and to compensation for the non farm kids what does that look like.
[00:29:25.290]Allan Vyhnalek: is inclusive to include pieces the ground is include a third of all the ground if there's three kids you know what is what is what should that look like.
[00:29:32.760]Allan Vyhnalek: And for the younger generation they're going to need money for their lifestyle and the older generations, not necessarily going to understand that, because right now.
[00:29:40.200]Allan Vyhnalek: we're you know, most people understand this, but there's some of the older generation they don't get it yet, but we're blowing a hole in our budgets two to $400 a month for electronics like like cell phones and ipads and wireless.
[00:29:52.050]Allan Vyhnalek: And this, and that and everything and all that stuff takes cash and they managed to stick it to us pretty good then that bill simply wasn't there 30 years ago that two to $400 just wasn't there.
[00:30:05.040]Allan Vyhnalek: younger generations gonna need to grow their business and you capital do that, you need and then there's a value difference between the generations on things like attitude towards debt ownership versus reading, but more importantly on family time versus work.
[00:30:18.180]Allan Vyhnalek: It infuriates the older generation my generation and above my parents generation, yes, the younger generation.
[00:30:26.400]Allan Vyhnalek: chefs to combine down at three o'clock on a Thursday afternoon in October during harvest to go watch their junior high girl play junior high volleyball.
[00:30:38.490]Allan Vyhnalek: infuriates still regeneration, because by God, the only time you get to combine down is for Friday night lights, you have fun playing.
[00:30:45.870]Allan Vyhnalek: Big time football Friday night high school football or back in the 90s, and the first part of the 2000s we shut to combine down on Saturday you're watching us and now we don't even do that.
[00:30:57.360]Allan Vyhnalek: Second pot pie chart it's time for our side.
[00:31:01.260]Allan Vyhnalek: With the bottom line is family time versus works, important and the other family i'm talking with the go go's the parents i'm talking with the parents their grandparents and you're going our son we hired him to work here at the farm for us.
[00:31:16.260]Allan Vyhnalek: We don't hear he's got someone who's already has some of his own ground so he's supposed to be here, help us fix our machinery and do our work for us and it turns out, and that.
[00:31:27.150]Allan Vyhnalek: he's got a baby wipes a new mom got a baby that's cool we love our grandkids that's awesome but we we kind of expect him to do his own farming unique.
[00:31:36.420]Allan Vyhnalek: But it's why it's expecting him to do is farming eight to five or when he's working for us, so you give the harmony.
[00:31:42.210]Allan Vyhnalek: And so that was creating this this uncomfortable situation, and it has to be communicated has to be figured out.
[00:31:49.020]Allan Vyhnalek: As a transfer the next generation is important to consider if you're gonna have good lucky enough to have somebody come back to your operation, think about this.
[00:31:55.740]Allan Vyhnalek: we're gonna have a young person come back, are we testing them properly.
[00:31:59.400]Allan Vyhnalek: or they're willing to go scuba there are they willing to go fix fence or they're willing to do the rotten jobs if I if my back's get to run to do my mind needs to get to her too much my shoulders are out because i'm not cows too long, or whatever.
[00:32:14.640]Allan Vyhnalek: physically physically for the older generation we're starting to fail on some of these things a little bit so that's why we have that you know, we want to have that younger generation route that's a good thing.
[00:32:23.100]Allan Vyhnalek: But to be true if we just leave that younger generation on the business end of offensive players are on the business end of a pitchfork How long are they going to stay there not.
[00:32:31.950]Allan Vyhnalek: See you better be considering what's going to happen with the management transferring you better do that three times.
[00:32:37.320]Allan Vyhnalek: The worst thing you can do is give management transfer all at once, say okay son jake my first ticker go go for it you're managing the whole thing help you go go for it.
[00:32:48.450]Allan Vyhnalek: If you don't if you just turn it over to them all once you're both going to be mad at each other, probably go you both be living with each other within six months, guaranteed and probably within two or three months.
[00:32:58.560]Allan Vyhnalek: Because the younger generation is going to make a different decision, the old generation would.
[00:33:02.970]Allan Vyhnalek: And the older generation question that decisions, why did you that that way.
[00:33:06.780]Allan Vyhnalek: And the older generation will be miffed because they made a decision that they wouldn't have made and younger generations gonna be mad because you gave me control how dare you countermand that control.
[00:33:17.250]Allan Vyhnalek: So just be careful with an agent transfer what I suggest is do a plan which timed out planned little words by the sun come back to my operation and say hey you got that ad.
[00:33:28.980]Allan Vyhnalek: that's yours decide what your plan.
[00:33:30.870]Allan Vyhnalek: decide when you're going to plant what fertilizer to use it to control weeds how are you going to market the crop hide in a harvest when we're going to harvest and all that stuff that you're a keep your own records let's compare it to the rest of the form.
[00:33:42.840]Allan Vyhnalek: Because, at the end of the day, the only time, the only way that any of us ever learned it's with experience and making mistakes, so we better start the younger generation with those mistakes.
[00:33:52.140]Allan Vyhnalek: don't give them the whole farm don't give them enough to hang a place to get to play some trouble but give them a piece of bacon.
[00:33:59.070]Allan Vyhnalek: You know if something would go to heck on at we'd lost at are some bad my bad half because we use the wrong whatever that's not all that would take out the whole operation, but then hopefully we learn something.
[00:34:10.620]Allan Vyhnalek: or give them a section to grass or doing whatever decide what goals you can read the cows with or I don't know you can decide what that looks.
[00:34:18.690]Allan Vyhnalek: acid or enterprise transfers the next thing you have to start working on and to me this isn't that hard asset transfer would be something like machinery.
[00:34:26.730]Allan Vyhnalek: And machinery you'd make sure you use the gift tax and others that have signed up a son or daughter back operation and give that son or daughter 15,000 my wife can get that son or daughter 50,000 de Mer they're married my can give that spouse 50,000 and my wife you that's.
[00:34:43.080]Allan Vyhnalek: All within the gift cats give tax exclusion for this year that's up to 60,000.
[00:34:48.420]Allan Vyhnalek: So you can start moving machinery fairly quickly if you just use that there's some irs forms got to fill out to make sure that's handled on the up and up.
[00:34:55.680]Allan Vyhnalek: But you can do that you start that way or sell it to them sell to them or whatever, however, she said to make sure you have a plan to care.
[00:35:03.870]Allan Vyhnalek: Livestock to transfer the easy way to do that on calc as a son or daughter if you're out there with me, even on.
[00:35:10.950]Allan Vyhnalek: A Sunday night in middle of the night during a snowstorm it's 30 below you're out there, helping me all the time with that Kevin.
[00:35:18.120]Allan Vyhnalek: i'm going to give you a 10% of the crop 30% of coffee cups in the crop capital that's all your.
[00:35:24.240]Allan Vyhnalek: And that's how you build her her that's how you get transferred out yourself, you know from yourself and that's not that hard.
[00:35:30.720]Allan Vyhnalek: way that's a State tax and in the gift tax on stuff set up now, we tend to wait to do the farmland transfer into death.
[00:35:39.810]Allan Vyhnalek: And we don't know what's going to happen with the tax is going forward, and we know that some of the proposals aren't necessarily all that favorable to AG, but hopefully the AG, people will get to Congress in and adjust that a little bit for it.
[00:35:51.930]Allan Vyhnalek: But the whole farm land transfer the way the laws are written correctly works in the currently is that most of the lands going to transfer death.
[00:36:00.690]Allan Vyhnalek: And we're doing that because you right now we get the increasing basis there was a farm oh say let's take an example for you guys from your mom and dad is $1,000 me.
[00:36:10.740]Allan Vyhnalek: And now it's worth $3,000 in that difference is what you get to capital gains on the 3000 minus 1002 basis is 2000 copies.
[00:36:20.940]Allan Vyhnalek: So you sold that farm while you're still alive you liable for 25 30% on that $2,000, however, if you're if you pass on you give it to your kids now.
[00:36:33.150]Allan Vyhnalek: That capital gains exceeded that basis jumps up to whatever it is it's a time of death, so if you die it's worth $3,000 you could sell for $3,000 they have no complications.
[00:36:43.230]Allan Vyhnalek: So they're talking about adjusting how they do that stepped up and basis and so watch that very carefully.
[00:36:49.620]Allan Vyhnalek: And that but that's how it empties give you some examples i'm trying to roll through this i'm not going to get everything done by one o'clock and, hopefully, maybe brandon gives me a couple minutes next week we'll see as far as I can.
[00:37:01.230]Allan Vyhnalek: Do all this would be written plans have a business plan in place have job descriptions place have a management structure in place.
[00:37:07.950]Allan Vyhnalek: Have exit plans in place, being an exit plans need to go for both of the younger generation, the older generation, because you never know who's going to have a problem or who which spouse decides didn't want to be on the farm anymore those.
[00:37:20.790]Allan Vyhnalek: Communication is the key to all this to happen, correctly and the first step to communication is to understand and that's the listen.
[00:37:30.390]Allan Vyhnalek: You have to understand what other people are coming from first, if you don't listen to them first you'll never get your point across talk all you want now i'm going to work.
[00:37:38.940]Allan Vyhnalek: You have to listen, first, and you have to listen first at first and just to understand and you didn't, then you can be understood that's, the only way it's going to work, because at the end of the day, am I going to listen to somebody that does not listening to me.
[00:37:54.030]Allan Vyhnalek: At the end of the day, am I going to appreciate someone else if they don't appreciate what i'm saying no okay so i've always said, my true friends the friends that asked me about me not just keep talking about themselves.
[00:38:09.300]Allan Vyhnalek: And everything they're going to do, because they're not showing you a proper appreciation.
[00:38:14.190]Allan Vyhnalek: Right now.
[00:38:17.340]Allan Vyhnalek: I did, I had a workshop and first and i'd make you do this practice part and you have to repeat back to what you what you thought they said they make sure they said, did you makes you repeat back to them in a proper way.
[00:38:27.510]Allan Vyhnalek: and make sure that you ask clarifying questions, make sure you listen for the answer repeat the answer and ask a clarifying question.
[00:38:34.680]Allan Vyhnalek: What are you going to do, Friday night well I plan to watch the nebraska volleyball game now that's cancelled against Wisconsin got cancelled and now.
[00:38:45.480]Allan Vyhnalek: So i'm not sure what i'm going to do yet, and so you would ask the question back well.
[00:38:51.840]Allan Vyhnalek: wow basketball, so I heard you say too much volleyball now that's cancelled, why we then you know they're they're good clarifying questions so it was cancelled because of some to do with coven and somebody had coven we don't know who yet.
[00:39:03.630]Allan Vyhnalek: i'm seeing here you listen to the answer and and asked another clarifying question ever talk about yourself and what you'd like to say, always ask them about what they're doing what's going on and ask clarifying questions, but with a guy.
[00:39:17.640]Allan Vyhnalek: And you need to also consider a family somewhere along the way here.
[00:39:21.180]Allan Vyhnalek: and understand that if you choose to have a family meeting between your family members that have to work on what's going to happen when a state plan you're having that first family meeting, not to make decisions you're not.
[00:39:34.200]Allan Vyhnalek: you're having that first family meeting so that you include all the family members and communicate, so that you are, you get around allow them the opportunity to have input.
[00:39:44.100]Allan Vyhnalek: Because how do I feel about how do I feel about being a part of the fam i'm going to feel good about it, if I have input into what's going on.
[00:39:50.610]Allan Vyhnalek: If I don't have input going to what's going on, I will I really feel like i'm a part of that family now So be careful, I think that's true.
[00:39:57.750]Allan Vyhnalek: Now you're not getting debt, you know and again going back to the first comment I made earlier.
[00:40:03.960]Allan Vyhnalek: To get that we are we're going to have a family or not and we get done this conversation get documented first.
[00:40:08.850]Allan Vyhnalek: And the parents grandparents new degree, how to proceed, and in a he had a degree that's okay to have found me and how to.
[00:40:15.510]Allan Vyhnalek: Do this i'm having I have a fair number of lawyers that have worked with or talk to the don't think we should have found me so.
[00:40:21.990]Allan Vyhnalek: They seem to teach a matriarch or patriarch I put them in a room and they work with them decide how it's going to go no family.
[00:40:28.830]Allan Vyhnalek: that's just a waste of time, I say this implants and several other people I work with say it's important to have input from everyone, so you know, whatever wasting.
[00:40:36.960]Allan Vyhnalek: So we don't have the situation I described a few minutes ago, where the kids were willing to come back to the farm and but give us an acre so we can build a house and that's what the parents, so you can avoid some of that.
[00:40:50.580]Allan Vyhnalek: If you have a family meeting care plan carefully to avoid disaster, who do you invite.
[00:40:55.950]Allan Vyhnalek: Again laura's will disagree with me on this, but I think you and I advise the son son daughter son daughter son and daughter, in the second line air, and I think you invite the spouses to because.
[00:41:05.820]Allan Vyhnalek: it's been my observation, if I have a problem it's usually coming from one of the spouses and i'm not trying to rail on spouses heck i'm want to write to my phone.
[00:41:15.900]Allan Vyhnalek: So I get that but some some words and say never invite the laws and i'm kind of going yeah I think I want to stop there, because that's where a lot of questions get to me.
[00:41:25.380]Allan Vyhnalek: And I personally would even include grandkids that are older, to to be a participate and do it in a mature way.
[00:41:31.920]Allan Vyhnalek: i'm not going to prescribe that age, because I know a 1415 year old kids to be perfect in this kind of discussion, especially if they're interested in farming.
[00:41:39.120]Allan Vyhnalek: ranching and I know of other grandkids or 2122 colleagues, it would not should not and we are not mature enough to be in this discussion, so you everybody has to figure that out for themselves.
[00:41:50.880]Allan Vyhnalek: And if you're having a family meeting, make sure you have to ground rules in place, and maybe more number one if I have an idea because i'm being allowed to give influence.
[00:42:00.150]Allan Vyhnalek: I should not have idea criticize don't allow chris's we're just generating ideas more ideas.
[00:42:07.050]Allan Vyhnalek: And number two, you have to be careful of the people want to talk all the time and if you need to use your gag rule is just basically says.
[00:42:15.330]Allan Vyhnalek: everybody gets a chance to talk about what do we do with the South farm everybody gets a chance to talk about the subpar once.
[00:42:22.980]Allan Vyhnalek: And nobody gets a second making stick and second comment about the south farm and tell everybody else in the families had a chance to make a comment about.
[00:42:29.850]Allan Vyhnalek: No, no criticism, no, no extra talk, because I know some people.
[00:42:35.250]Allan Vyhnalek: Even in my family that will make some kind of comment or make some kind of a follow up statements everything's being said and, if that dead she's disruptive but it just messes things up know gnc to gag rule feature be are interested about that.
[00:42:50.580]Allan Vyhnalek: See already talked about this yeah I have it on both sides, so I thought I can go on.
[00:42:56.610]Allan Vyhnalek: When you get to decision making, Dan then who's at the table, if your decision making that his mom dad grandma grandma that idea.
[00:43:06.030]Allan Vyhnalek: If they got the girl, they can make the rule that's it or you could conclude that plus the children son daughter son daughter son daughter, but no spouses no grandkids.
[00:43:15.720]Allan Vyhnalek: Because, at the end of the day, you have to gold makes the rules we talked to share with non local family.
[00:43:22.380]Allan Vyhnalek: And that what I what I mean by that is.
[00:43:26.760]Allan Vyhnalek: What I mean by that is i've sat with me once where we had the non farm kid call in on a.
[00:43:35.520]Allan Vyhnalek: cell phone speaker put on speakerphone so they could listen to the conversation has happened between mom and dad and the other kids their.
[00:43:44.160]Allan Vyhnalek: kids and that person actually stop the conversation and asked several good questions, just to make sure he was.
[00:43:51.330]Allan Vyhnalek: clear on what was happening, and he was fine with it, with everything that was happening, but if you don't include them and they have those questions, then creates doubt it creates problems.
[00:44:01.830]Allan Vyhnalek: And without you, you lose confidence if you lose confidence and you don't trust it if you don't have trust you don't have anything So be careful about that.
[00:44:11.280]Allan Vyhnalek: Be careful sweetheart deals.
[00:44:16.650]Allan Vyhnalek: So the most famous sweetheart deal story I have is the one situation, a family of four kids lost their mom and dad they were gone for kids.
[00:44:24.720]Allan Vyhnalek: had one of the brothers, the one brother was farming yo three kids are sitting down with their brother determine what happens with the rent and next year after mom dad.
[00:44:33.120]Allan Vyhnalek: And i'm going to use some fictitious numbers here but but it just gives you the idea, the rent in that part of the world at that time, and this happened was about $300.
[00:44:43.440]Allan Vyhnalek: Instead of four kids sit down, he asked to on farm brother, what did you, what do you pay mom dad.
[00:44:48.990]Allan Vyhnalek: He goes well i'm paying mom and dad $90.
[00:44:53.460]Allan Vyhnalek: In on the surface, that looks like to sweetheart deal of all sweetheart deals because rants about $300 break and he's paying nine.
[00:45:03.930]Allan Vyhnalek: Well, somehow.
[00:45:06.960]Allan Vyhnalek: From the other brothers and sisters standpoint he's getting such a good deal that he ought to have to pay back rent and he.
[00:45:14.220]Allan Vyhnalek: had to happen and and he ought to He owes us more you know he's not being fair to those states well let's talk about that person be careful, these sweetheart deals, because the end of the day.
[00:45:26.820]Allan Vyhnalek: They maybe they're good be here's Let me explain if you're paying $90 with the anchor for him who's paying the taxes on the ground if the tax on the grounds 100 bucks the tempting the farmer, he didn't make mom and dad people taxes.
[00:45:41.610]Allan Vyhnalek: Oh, and if there's a forest in a place to take care rewritten and putting a new windows and siding and took care of rock in the driveway stuff like that will the farmer that 10.
[00:45:51.450]Allan Vyhnalek: And if there was a pasture on the place you wanted to circle, the pivot to go all the way around what do we do with that pasture we brought in a bulldozer and pay for the bulldozer and had to.
[00:45:59.520]Allan Vyhnalek: patch your fence pushed in and had their trees pushed in and had the banks kind of leveled off, so the patch so circle circle good work so appealing to work, all the way around.
[00:46:07.740]Allan Vyhnalek: Good pay for that bulldozer and all that work and to do it all back breaking work to pick that mom grandpa and grandma didn't do that deformity.
[00:46:15.930]Allan Vyhnalek: And by the way, who took care of mom and dad as they went from the farm to the assisted living to the nursing facility hospice and then all the end of life decisions will that on farm because he's the one that was there do three word around.
[00:46:31.620]Allan Vyhnalek: On i'm trying to point out is there's always more than one side story, and in this case, if those read that grandpa and grandma are getting 90 bucks a year clear.
[00:46:40.410]Allan Vyhnalek: 90 bucks an acre a year clear maybe they're getting a great deal, I don't know you have to always ask more questions don't assume anything.
[00:46:48.930]Allan Vyhnalek: And we talked to Dan degeneration requires better communication well received and I, we talked about the older generation not want to talk about this.
[00:46:57.450]Allan Vyhnalek: here's another way to look at communication thing and, by the way you have to show that you're listening and here's kind of a kind of ending video to prove the point about listening proper.
[00:47:11.760]it's just there's all this pressure, you know.
[00:47:15.510]And sometimes it feels like it's right up on me and I can just feel it like literally feel it in my head and it's relentless and.
[00:47:27.900]I don't know if it's going to stop I mean that's The thing that scares me the most is that I don't know if it's ever going to stop.
[00:47:34.740]yeah.
[00:47:38.100]You do have the nail in your head.
[00:47:43.350]is not about the nail, are you sure, because I mean i'll bet if we got that out of there stop trying to fix it no i'm not trying to fix it i'm just.
[00:47:50.940]pointing out that maybe the nail is cause you always do this, you always try to fix things when when I really need is for you to just listen see I don't think that is what you need, I think what you need is to get the nail, not even listening now okay fine I will listen fine.
[00:48:05.730]it's just.
[00:48:07.410]Allan Vyhnalek: Sometimes it's like there's this achy.
[00:48:13.050]I don't know what it is.
[00:48:15.870]And i'm not sleeping very well at all and all my sweaters are snagged mean all of them.
[00:48:24.240]That sounds.
[00:48:26.700]really hard.
[00:48:34.200]Oh Come on, if you would just don't.
[00:48:40.350]Allan Vyhnalek: So the bottom line is.
[00:48:43.470]Allan Vyhnalek: If the other people don't feel like we're listening to them.
[00:48:47.640]Allan Vyhnalek: you're in trouble and, by the way, why do I show that video that I just showed because it happens to me all the time, my wife and my children who started to try to describe something.
[00:48:57.270]Allan Vyhnalek: or you're my brother, can you describe something and I got the solution.
[00:49:01.290]Allan Vyhnalek: But I got it I gotta not give the solution, I go with them describe it, because if I jump in and give them the solution and they're not ready to hear it, it doesn't do any good.
[00:49:09.300]Allan Vyhnalek: Especially with my wife this doesn't do any good guy loves blend it all come out let it all happen, and then you did some point time when they're ready for the solution, you can try and provide some solutions.
[00:49:19.980]Allan Vyhnalek: and
[00:49:22.530]Allan Vyhnalek: i've already talked about that okay difficult personalities and you slide for this segment for this video, that is, that.
[00:49:32.220]Allan Vyhnalek: don't we run into that older generation, especially that like i've said Eastern European descent, they don't want to share personal information.
[00:49:40.620]Allan Vyhnalek: And it's attendance tends to be a generation of value to me they only give up control, they only go down and talk about being not being in control if I talk about my estate plan or if I talk about my.
[00:49:49.560]Allan Vyhnalek: Succession plan that means i'm not in control I don't want to think about that.
[00:49:53.190]Allan Vyhnalek: I don't think about death i'm avoiding all these thoughts and i'm going to do with it and it and if they don't feel like they're being listened to, or appreciated by their families, they don't want to ever share.
[00:50:01.440]Allan Vyhnalek: And by the way, since it's like the second time i've showed this slide if you got other things, to add to this.
[00:50:05.940]Allan Vyhnalek: In terms of what those difficult personalities look like, please let me know i'd love to add more to that slide those are things I think about when I think about somebody not wanting to communicate properly with their other fan.
[00:50:17.070]Allan Vyhnalek: And strategies, I think, did you gotta do is number one is you got to figure out how to increase communication.
[00:50:22.800]Allan Vyhnalek: And you have to make them feel make sure it's a feel appreciate, make sure they feel like they're part of make sure they're they're very do what they're saying is being valued make.
[00:50:32.700]Allan Vyhnalek: Talk about anything else, to begin with the nebraska used to talk about the huskers but now you talk about sorry Scott prosper.
[00:50:39.480]Allan Vyhnalek: The talk about the weather, are you talking about the volleyball team, you talk about whatever okay talk about something else, just to get them started talking.
[00:50:47.940]Allan Vyhnalek: Just to just to start engaging in conversation, and you could try and maneuver around that difficult thing that you want to get you.
[00:50:54.210]Allan Vyhnalek: If you can't get to them, then maybe try find out who their kingmakers there is a king who the kingmaker is is if it's an old guys at the mom if it's an old guy is it is banker, is it is pastor is it.
[00:51:07.110]Allan Vyhnalek: You know I don't know who that we have one of his friends somebody goes to play cards with you, we have to figure out who that kingmaker is to get them to listen to someone.
[00:51:15.600]Allan Vyhnalek: And it always maybe when you do the conversation with them, try and get try and give several choices for everything that you're talking to them about so they get you get you get some idea with their preference might be.
[00:51:26.880]Allan Vyhnalek: Those are my some of my strategies and I have, I have thought about the how we do deal with difficult personalities and sometimes you never get in there for some time, you never get through them properly, this is something some ways to try and start that conversation.
[00:51:40.170]Allan Vyhnalek: you're going to talk a little bit on negotiation, I think I have time to do is get negotiation is interesting, because often do we negotiate negotiate all time.
[00:51:48.060]Allan Vyhnalek: With us car use tractor salesman with the with the grandkids or kids to go I want a candy bar candy bar again when we ready to go to the store.
[00:51:56.490]Allan Vyhnalek: And in or with family in this case, I want to talk about the family, because that's where it gets to be tough because we're using this all the time tractor leasing raised with purchases custom work we do and negotiation all the time we're all the stuff tractor purchases a.
[00:52:13.170]Allan Vyhnalek: it's a back and forth process when you have a post and and shared views and you're trying to figure out how to come out how to make this work out but, more importantly, I want you to think about this, I was taught how to negotiate by my father and my father taught me that I had to win.
[00:52:32.580]Allan Vyhnalek: Now this is kind of a made up story, but it would be very similar to what my dad would have done, to be able to make up the story.
[00:52:38.820]Allan Vyhnalek: I go with my dad to the user edits made up it's not real but.
[00:52:42.060]Allan Vyhnalek: it's exactly what happens I go with my dad i'm 13 or 14 years old, I go to the to the implement dealer we sit in a salesman's room and we're negotiating on a different tractor and on new tractor tractor they were $100 a part dad and the salesman $100 part 14 years old 1969.
[00:52:59.340]Allan Vyhnalek: And we spent two hours there haggling back and forth on what to happen once you tap into and finally dangerous two hours in the salesman was so sick of seeing us in these office that he gave us this split the difference $50 we went over.
[00:53:15.240]Allan Vyhnalek: All right, let's talk about 19 69% 9069 if I shelled corn, or if I held hay bales or by whole dale's I was getting paid 75 cents or a buck an hour.
[00:53:26.130]Allan Vyhnalek: Day remember 75 cents to $1 an hour that's what Labor was worth on the farm we're going home this didn't happen, but i'm making it up.
[00:53:34.590]Allan Vyhnalek: we're going home and I get to pick up as a dad we just spent two hours with that guy yeah we did we got $50 on yeah we did well, it seems like a long, long time just to get $50 and said, where else we need goes to me where else are we going to make $25 an hour just.
[00:53:53.940]Allan Vyhnalek: to shake true so for some people, it was all about winning you had to win Okay, but for working with family how's that what's that going to feel like.
[00:54:03.240]Allan Vyhnalek: If I work over my mice my brother for that last 50 bucks or if I work over my children and make put that pit them against each other how's that gonna work.
[00:54:13.170]Allan Vyhnalek: I don't think that's good I don't think that family members are going to appreciate if they did not feel good about this and appreciate what's going on, if they feel like they're locked.
[00:54:20.700]Allan Vyhnalek: that's my point of bringing us all up if we're negotiating and we're negotiating with family let's put away that old way of negotiating which meant we had a when.
[00:54:28.350]Allan Vyhnalek: You have to think better, we have to do better than that it should not be about winning with families, you have to create more value I think when when.
[00:54:35.730]Allan Vyhnalek: Get creative when you think about that how you create that value, it has to be more than your you want to sell for $2 i'll give you $1 in the end up at a buck and a half that's we got to do better than.
[00:54:46.710]Allan Vyhnalek: Okay, if you're selling widgets for $2 I want to give you $1 maybe i'm going to ask what do you have the.
[00:54:53.880]Allan Vyhnalek: Rigid or do you have the 2020 reach the 2021 widget has the extra add on feature which is called a thing of a jade.
[00:55:01.710]Allan Vyhnalek: And if you have that 21 model i'll give you the $2 if you only have a 20 model or 19 model i'm going to give you $1.
[00:55:10.650]Allan Vyhnalek: Now, how do we create more value what does that look.
[00:55:12.810]Allan Vyhnalek: Like when I when I trade for trucks and i'm trying to negotiate for running boards i'm trying to revoke negotiate for tonto cover or something like that.
[00:55:20.520]Allan Vyhnalek: How do we create that value we just sitting with trackers everything else that's the thing when when how we make that get created how we trade Labor, how do we do, how do we add on.
[00:55:30.960]Allan Vyhnalek: When we get in trouble with family on negotiation and we tend to forget these fights needs the appreciation do we appreciate everybody we're working with are they being listened to a kind of talked about the.
[00:55:41.160]Allan Vyhnalek: affiliation or retreating people his adversaries and we trying to when are we treating them as college it's called colleagues for his family, I.
[00:55:47.670]Allan Vyhnalek: think we have to think about that and then autonomy status and roll autonomy free to make decisions status, who between the inferior.
[00:55:54.870]Allan Vyhnalek: or role, are you filled with oil, you have a timestamp roll us old people as old white guys tend to be unfair to people with autonomy stats role because we go to the young people with proper autonomous decimal.
[00:56:07.470]Allan Vyhnalek: And we don't treat females any age with proper Thomas decimal be careful about those just watch that.
[00:56:16.020]Allan Vyhnalek: here's how to create more value Star Wars style, this is this is your first original Star Wars obi wan and Luke are negotiating passage daughter on the way it sounds Han solo and chewbacca and see how that negotiation goes.
[00:56:36.930]i'm Captain in the millennium.
[00:56:39.240]Julie here tells me you're looking for passage to the old system.
[00:56:43.620]If it's a fast fast chit you've never heard of the millennium phone.
[00:56:49.500]Should I have it's a ship that made the castle run in less than 12 parsecs.
[00:56:56.100]Running starships not the local police cruisers, mind you i'm talking about the big ships now.
[00:57:04.410]she's fast enough.
[00:57:07.200]what's the card on the passengers.
[00:57:10.320]So the boy to draw it.
[00:57:14.400]No questions asked.
[00:57:17.640]What is it some kind of local trouble let's just say we'd like to avoid any imperial entanglements.
[00:57:25.950]Well that's the real trick isn't.
[00:57:29.310]It it's gonna cost you something extra.
[00:57:32.700]10,000 10,000.
[00:57:41.490]he's gonna fly you you bet I could i'm not such a bad pilot myself, one of the city.
[00:57:49.020]We can pay you 2000.
[00:57:51.300]Plus 15 when we reach all.
[00:57:55.500]17.
[00:58:00.300]Okay, you guys got yourself to ship leave as soon as you're talking behind.
[00:58:09.660]Allan Vyhnalek: That gives you that gives you an idea of your how to create more value, in other words, who wasn't a $10,000 deal or 10,000 whatever they were units, they were using it's a $17,000 deal, but you have to get surface that's how you create more value in that type of thing.
[00:58:24.870]Allan Vyhnalek: i'm fair may not always be equal I talked about that right reception differences I got like two minutes left did you have any questions for them in the chat.
[00:58:34.110]Allan Vyhnalek: there's a perception difference between the older sees me between the on farm kid and the off farm kids the on farm kid knows what he's continued to that operation over a period of years and he thinks he writes his.
[00:58:45.150]Allan Vyhnalek: perception of his contribution is a out of 10 nine out of 1010 out of 10 it's because of my work in my expertise and my training in college and all that stuff they had brought back into this operation we were walking to sing we got the biggest viewer.
[00:58:59.670]Allan Vyhnalek: And all his brothers and sisters all farm will say little johnny's contribution is four out of 10 five hours 10 six out of 10 because we know that he supplied sweat he worked hard, but you know he's always.
[00:59:13.830]Allan Vyhnalek: A mom dad's coattails and mom and dad especially dad was always the brains of the operation, so there understands there's always be a gap we.
[00:59:25.230]Allan Vyhnalek: already talked about the roses.
[00:59:27.600]Allan Vyhnalek: i'll talk about that I will take time get your ears your homework assignment i'm going to get this done right on time.
[00:59:32.940]Allan Vyhnalek: Though well, maybe not quite gotten together, maybe go a couple minutes of what long you guys have a team and your team might include your banker your advisor CPA insurance agent.
[00:59:41.820]Allan Vyhnalek: But it probably almost has to has to include a lawyer, fortunately or unfortunately depending on how you look them.
[00:59:47.160]Allan Vyhnalek: up for you go see your lawyer get this together.
[00:59:50.670]Allan Vyhnalek: here's where I save you money get your list of what you have your assets your balance sheet is what I have this well they didn't how do I have it is it a sole proprietorship.
[01:00:01.290]Allan Vyhnalek: isn't a corporation, is it a partnership to list all that stuff separate and then then new and then the matriarch or patriarch or the people in charge this operation, I really do any perfect world, this is why I want to have to happen to my stuff then go see a lawyer.
[01:00:18.450]Allan Vyhnalek: To make people spend time thinking why I decided before I go see aware whether i'm going to have an.
[01:00:24.240]Allan Vyhnalek: llc or a trust what's the difference there and I got to come up with this here come up dad how's attacks, going to be don't worry if I asked up.
[01:00:32.130]Allan Vyhnalek: Have a good list decide what you want to do it and then go see if there's any good they'll apply the right tool to if you don't feel good about to to.
[01:00:40.830]Allan Vyhnalek: Go get it find a different lawyer lawyers or a diamond and don't be afraid to fire one a good one because you should get done with you want to have done and make sure that you make that clear.
[01:00:49.980]Allan Vyhnalek: here's some articles to get more information they'll be on slides i'm going to take time so key now they'll be on the slides if you want to pull them up later on.
[01:00:58.290]Allan Vyhnalek: We already talked about the rural response hotline doesn't even get an hour to get questions answered, and they have money.
[01:01:04.740]Allan Vyhnalek: They have monthly clay spots to stay when they meet in person right now they're doing it by phone.
[01:01:08.280]Allan Vyhnalek: call that number and get an hour with Joe and Dave Johan baker's attorney day dealers good financial guy get an hour with them and kind of talk about what's going on, get you started.
[01:01:16.260]Allan Vyhnalek: Or you call me i'll help you get started to the rescue being beginning farmer information for the next gen Program.
[01:01:21.930]Allan Vyhnalek: that's a good thing to know about me she looked at up next gen the brother used to be, if you're starting the beginning farmer make sure you use the gen X gen program it gives the landowner credit for their taxes.
[01:01:34.260]Allan Vyhnalek: here's some other resources farm credit nebraska investment finance authority rest as part of the revenues farm service agency of the bride loans so make sure you utilize those of your beginning farmer.
[01:01:45.750]Allan Vyhnalek: I last thing i'll say is landline land link I started at the beginning of the month we're trying to solve two problems.
[01:01:52.980]Allan Vyhnalek: Land seekers we've got young people willing to go for but they don't have access, if they don't have access to their family, they don't have access to land, so there you have access to the trouble with access to to a farm and ranch down to take it either operation or.
[01:02:07.740]Allan Vyhnalek: older generation like I said earlier about half don't have a succession plan, so the current information, so the older generation needs to.
[01:02:17.340]Allan Vyhnalek: Maybe if they want, if they want their operation to team was their operation like xyz ranch or X, Y Z farmland.
[01:02:24.660]Allan Vyhnalek: Then a better think about what did you do to help somebody get started with their operation to keep it going it's xyz.
[01:02:30.960]Allan Vyhnalek: So everywhere we tried to use create a database here or to keep track of.
[01:02:35.640]Allan Vyhnalek: Land seekers landowners i'm not going to publish it online it's it's going to be kept in the kind of in my office on my computer.
[01:02:41.580]Allan Vyhnalek: And i'll be get applications to both groups right now I have over 30 applications from wine suitors okay.
[01:02:46.980]Allan Vyhnalek: And applications were reviewed and i'll do follow up phone calls both bicycles and land land owners and we're trying, maybe make two or three matches or visit matches going to give give the land owners two or three.
[01:02:58.620]Allan Vyhnalek: matches from land seekers and they can decide who they want to talk to what they want to talk to do an interview, if you want to have him come up to a place, they can decide to do and how.
[01:03:08.280]Allan Vyhnalek: It started, and I have like I said over 30 applications from wind seeker, so I need more landowners in clearly.
[01:03:15.210]Allan Vyhnalek: And you can go to the website of farm that you know that you look for handling it has online information online videos that i've already done i've already recorded and the applications available that website, if you have any questions comments you contact me.
[01:03:29.700]Allan Vyhnalek: In occasions to keep please listen.
[01:03:33.480]Allan Vyhnalek: Hello family meeting try and gather some input don't make decisions gathering for you all those end of life decisions of place and fair is not equal, good luck.
[01:03:42.360]Allan Vyhnalek: And so that's the end of my talk, is there any questions i'm somebody typed in a single question today and we had to close to 90.
[01:03:50.010]Allan Vyhnalek: that's interesting but glad to have you on next week I won't have anything to finish, because I got the new so we'll have branding on he'll talk about we'll get.
[01:03:58.380]Allan Vyhnalek: started with getting introduced and he'll talk about some of the tools that you can use some things you think about a year if, especially if you're transferring your operation on to another generation and for some other entity some things you can use any questions.
[01:04:11.460]Allan Vyhnalek: Somebody said, thank you, thank you, thank you for listening and taking the time.
[01:04:18.000]Allan Vyhnalek: Anything else.
[01:04:22.770]Allan Vyhnalek: Ryan, did we record, we did record okay cool all right, I think we just stopped recording and i'll hang on for another minutes out there if i'll hang around for another minute or so 30 seconds or so if somebody doesn't ask you another question somebody.

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Succession and Estate Planning for Farm and Ranch - Part 1 (Feb. 25, 2021 Webinar)

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