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WHY DO OVmERS OF A FARM BUSINESS I^IEED A WILL? 



Many successful farming tjusinesses have been forced into a sale because the 

 owner died v.-ithout having made a proper will. Such a situation is wasteful, 

 unfortunate, and unnecessary, A TTill, soundly planned and correctly executed 

 will avoid many problems and help to continue a farming business. The cost of 

 having a good will drawn and kept up to date is not high. 



Settling an Estate Costs Money 



Small estates need just as careful planning as larger ones. The tax costs 

 and other- expense may not be so large, but the possible shrinkage is higher in 

 proportion in the smaller estates - due to costs of administration, and losses 

 due to lack of prompt and experienced attention to affairs of the fanning business. 



Things To Consider 



The owner of a farm should provide, through a vfill, for his executors to 

 carry out any agreements made during his lifetime for the sale or other disposition 

 of his farming business. Or, in the absence of such agreements, to continue the 

 operation of the farm during the period of settling the estate, at the risk of the 

 cTmer's estate. 



Sometimes it might be proper, to plan for sale of farm equipment and livestock 

 and feed and supplies and for keeping the real estate to be rented as an income 

 asset for the beneficiaries, 



A definite requirement that the executors sell or liquidate the farm business 

 may or may not be advisable. The gains from continued operation need to be com- 

 pared with the returns from sale, Vilhen the word gets around that the farm and 

 personal property must be sold the market value often drops very rapidly. 



Courts having control over the settling of estates often order the estate 

 assets to be converted into money, in the absence of specific authorization to 

 continue the business. 



Authority of Executors 



Consideration should be given to giving the executors specific povrer to hire 

 managers, agents, consultants, accountants and sales brokers as well as authority 

 to continue the operation. Power to the executors to vote shares of the corpora- 

 tion in whatever manner is deemed advisable, when the business is incorporated, 

 should be provided in the will. The Executors should be given authority to select 

 or vote for the appointment of themselves or others as managers, officers or 

 directors. 



The will should also provide that any of these persons may at the same time, 

 be officers, directors or employees of a corporate executor, such as a trust 

 company or bank. 



The executors should be authorized to borrov^ money in order to assure the 

 profitable operation of the business without interruption. 



