Liquidity Needs – Incapacity and death are expensive and often require cash to pay expenses. But, farmland, farming equipment, personal residences, automobiles, and other personal effects are illiquid. Without properly planning for immediate and long-term cash needs, families will be forced to quickly sell land and equipment for pennies on the dollar.
Farmers, ranchers, and others have several options to choose from when creating a plan to manage debt and expenses after incapacity or death. Financial advisors, bankers, and insurance professionals can assist with securing lines of credit and the proper amount of disability insurance, long-term care insurance, and life insurance. Attorneys can assist by creating life insurance trusts, business entities, and other more complex strategies like part gift/part sale arrangements in exchange for a note or private annuity.