Why a Will Alone Is Not Enough for Farm Succession Planning

For many families, creating a will feels like a responsible and sufficient step toward planning for the future. It’s often viewed as the document that will “take care of everything” when ownership needs to transfer. While a will is an important legal tool, relying on it alone is rarely enough when it comes to farm succession planning.

Farms are complex. They are businesses, livelihoods, and legacies all at once. A will may dictate who inherits assets, but it does not address how a working farm continues to operate, how taxes are managed, or how conflicts are prevented when multiple heirs are involved. For farm families, succession planning requires a broader legal strategy.

What a Will Can — and Cannot — Do

A will serves a clear purpose: it outlines how assets are distributed after death. It can name heirs, appoint a personal representative, and provide general direction for an estate. For many families, this is a critical foundation.

However, a will only takes effect after death, and it often operates through probate. Probate is a court-supervised process governed by state law, and while it can work smoothly in some cases, it is not designed to manage the ongoing needs of a farm business.

From a practical standpoint, a will does not:

• Transfer operational control during life

• Prevent probate delays

• Address business continuity

• Minimize tax exposure on complex assets

• Resolve differences between heirs with different roles

These limitations are especially important for farms, where timing, authority, and continuity matter.

Probate and the Risk to Farm Operations

When a farm passes through probate, ownership and decision-making authority may be temporarily restricted. This can create uncertainty at precisely the wrong time. Planting schedules, livestock care, contracts, and financing decisions may all be affected while legal processes unfold.

State statutes govern how probate works, and those rules vary across states such as Nebraska, South Dakota, Minnesota, Iowa, and Colorado. In many cases, probate timelines and court requirements do not align well with the realities of running an active agricultural operation.

Without additional planning tools in place, a will alone may unintentionally disrupt farm operations rather than preserve them.

Tax Exposure Often Goes Unaddressed

Another significant gap in will-only planning is tax strategy. Farms often consist of high-value assets that may have been held for decades, including land, equipment, and business interests. Transferring these assets without proper planning can trigger estate taxes, gift taxes, or capital gains.

The Internal Revenue Service outlines how asset transfers are taxed depending on timing, valuation, and structure. A will does not provide mechanisms for managing these tax consequences proactively. Without coordination between legal and tax planning, families may face avoidable financial loss.

Effective farm succession planning considers not just who receives assets, but how and when those assets are transferred to reduce unnecessary tax exposure.

Farms Require Planning During Life — Not Just After Death

Farm succession planning is most effective when it begins while the current generation is still actively involved. This allows for gradual transitions of responsibility, mentorship of successors, and legal structures that support continuity rather than abrupt change.

The American Bar Association recognizes that business and farm succession planning often requires tools beyond a will, including trusts, business entities, and contractual agreements that operate both during life and after death.

These tools can:

• Establish clear management authority

• Protect the farm from forced sale

• Address fairness among heirs

• Support long-term operational stability

A will alone simply cannot accomplish these goals.

Balancing Fairness and Function

One of the most difficult challenges in farm succession planning is balancing fairness among heirs with the practical needs of the farm. Equal inheritance does not always result in an equitable outcome, particularly when only some family members are involved in day-to-day operations.

A will may divide assets evenly, but that division can unintentionally place strain on the farm or on family relationships. More comprehensive planning allows families to consider alternative ways to achieve fairness without compromising the farm’s future.

A Broader Planning Approach Protects the Legacy

Farm succession planning is not about replacing a will — it is about building around it. A well-crafted plan uses a will as one component of a larger legal framework designed to protect the farm, support the next generation, and reduce uncertainty.

By addressing operational control, tax implications, and family dynamics together, families can create a plan that reflects both their values and their long-term goals.

Moving Beyond “Good Enough” Planning

For farm families, a will is a starting point, not a solution. Succession planning requires a thoughtful approach that accounts for the realities of agriculture, business ownership, and family relationships.

Planning beyond a will allows families to move forward with confidence, knowing that the farm they worked so hard to build is positioned to thrive for generations to come.

Sources Referenced

• American Bar Association – Business and farm succession planning principles

• Internal Revenue Service – Tax implications of asset transfers

• State statutes governing probate and property transfer (state-specific)