Better Beef: Exit plan top priority for farmers looking to transfer wealth

Keeping an eye on the exit can keep farming families out of financial hardship during takeovers, according to a regional financial adviser.

Mixing with the herd at the Better Beef expo in Bunbury last week, Integro private wealth adviser Bryn Evans laid out the key ways to avoid financial hardship when looking to transfer wealth across generations.

He said having an “exit plan” was the best way to prepare for the unexpected.

Having worked with several rural families during difficult times of transition, Mr Evans said he had seen first hand how financial strain mixed with the loss of a loved one can tear families apart.

“It’s more common when you haven’t followed those key critical first steps of starting the conversations early and preparing the next generation,” Mr Evans said.

“Circumstances where this hasn’t occurred, and where the lines of communication are not open, are likely where you’re going to have strained relationships, people not talking to each other.

“In some circumstances, relationships between family members become effectively irretrievable, which is really sad and what we want to avoid.”

Mr Evans said the best way to avoid the situation was to have an “exit plan” in place.

“Every business owner should be thinking about ‘what’s my exit plan for this business?’” he said.

“If the exit plan is to transition over to a child then what are the steps that I need to take to prepare that person to take over, and what do we need to prepare so that the people who aren’t going to be in the business are in a position where they’re comfortable with what the plan is.”

Mr Evans said the same principals apply outside of business also.

“We want to make sure that people in your family are prepared, have strong financial literacy and are confident in thinking about investments that will benefit your future generations,” he said.