Developing a Succession Plan for Your Forest Can Shape Your Legacy
In May, the Clemson Extension Forestry and Wildlife team and the SC Tree Farm Committee hosted Dr. Tammy Cushing, an Extension Assistant Professor at the University of Florida, to lead an intensive, day-long workshop to help families plan the future management and stewardship of their forestland. The workshop guided participants through the succession process, with an emphasis on developing a transition plan. While designed for multiple generations to attend together, individuals interested in leading these efforts within their families also gained valuable insights. In 2022, Dr. Cushing co-authored the guide “Ties to the Land: Succession Planning for Rural Landowners.” This publication is available here and includes case studies and 13 worksheets to help guide you through the same process she led at the workshop.
Estate Planning vs Succession Planning
The goal of estate planning is to transfer assets and distribute or divide property among your heirs when you die. This could include bank accounts, investments, businesses, your home and its contents, vehicles, and any land you own (Worksheet 1 in the guide). The goal of succession planning is to pass the management and stewardship of your forested property, usually along with ownership, to those who want to be actively engaged in these processes. This is usually family members in the next generation but can also be organizations such as conservation groups or charities. Succession planning allows you to decide what you want your legacy on the land to be. While succession planning is not a required step in estate planning, it can help provide an option for forestland to pass to the next generation without being subdivided or having portions sold.
Not everyone will decide that succession planning is a step they need to take. Those who view ownership of forested property as strictly an investment and feel no ties to the land may not be concerned about what happens to the property when it is passed down. They leave it to their heirs to decide how to manage it in the future, including whether to sell the property.
Worksheet 3 in the guide includes a “Heirloom scale”, designed to help owners determine how strongly they feel about the future of their property. Co-owners can complete the worksheet individually and then discuss their responses to see how their values align. Developing a vision and set of goals for the property among the co-owners is an important step before beginning a conversation with potential heirs.
How Do I Know Who Should Steward My Land Next?
The “Ties to the Land” publication refers to two very important steps in succession planning as “engage the future”. Step one is to hold a one-on-one conversation with anyone you are considering as an heir or future steward of the property. Ideally, invite them to meet you in person on the property. Walking the land and discussing the land’s history and your vision for how the resources could be managed in the future will help convey the strength of your ties. Be honest with them about any challenges you are aware of, particularly financial ones, so their concerns can be addressed. They can also complete the Heirloom Scale to put their own thoughts about the land into words they can share with you.
During these one-on-one conversations, it may be revealed that an individual would find inheriting all or part of the land a burden. They may feel it would be a financial strain to cover their share of monthly or yearly expenses related to land management and upkeep, or they may have no interest in being a decision-maker for a property they feel no ties to. Another succession planning publication, entitled “Legacy Planning – A Guide for Virginia Landowners”, available online through Virginia Cooperative Extension, provides an excellent description of how “fair means equal” is not always the best strategy to use when developing a succession plan for your property. Leaving an heir who would feel burdened by land ownership, a monetary settlement and transferring the property ownership to an heir who wants to continue your legacy may not seem equal, but could be very fair.
The next step is to plan a family meeting or series of meetings. Worksheets 7 and 8 guide planning and executing the family meeting, including sample invitations and agendas, as well as a place to record minutes and action items. The meetings will be a time to gather the heirs and discuss the land and your hopes for your legacy as a group. Meetings can also be a time to provide more details on property management and associated costs. Having a goal or goals for the meeting can help narrow down the topics for each session into a manageable list and keep the discussion more focused.
Ideally, these meetings should not be held during traditional family gatherings, such as holidays. Any ill feelings that arise from the succession discussion can spill over into family gathering time, causing even more stress among the heirs. Another important suggestion for these meetings is to appoint an outsider as a facilitator if you foresee conflicts among family members during the discussion. This allows you to remain a participant in the discussion without having to serve as a referee. Finally, if possible, have members of your succession planning team (attorney, accountant, and/or forester) available to respond promptly to any questions from family members that you are not comfortable answering.
Prepare Your Succession Plan
Succession planning can be a months-long process, but taking the steps outlined in the linked publications can serve as a starting point. Determining ownership and management may be difficult decisions, particularly if the one-on-one conversations and family meetings brought out any heirs’ lack of interest in having a future role in stewarding the land and continuing a family legacy. Worksheet 9 provides a guide for objectively considering who should fill these roles.
Once the succession plan is drafted, you can move forward with your estate planning. The “Ties to the Land” publication outlines different forms of ownership structure that may best fulfill the vision you have for the future of your land. Building a knowledgeable team of advisors, including an attorney, an accountant, and possibly a consulting forester, who are familiar with forest management and land transfer options, will help ensure that your vision and legacy are honored and remain sustainable.
Author
Janet Steele, Cooperative Extension, Forestry and Wildlife Agent
Clemson University Cooperative Extension Service offers its programs to people of all ages, regardless of race, color, religion, national origin, disability, political beliefs, sex, marital or family status and is an equal opportunity employer.
