MANY of the State's farmers do not have a succession plan in place for their farming operations.
That's according to Bailiwick Legal director Philip Brunner who is holding workshops on succession planning for businesses alongside Dry Kirkness Legal Accounting partner Martin Kirkness and presented by agricultural advocacy group WAFarmers.
Holding their first workshop in Bunbury recently, the events have been designed to address some of the issues associated with succession planning with the men presenting case studies and answering participants' questions.
"Generally people don't really think about succession until they decide they want to retire," Mr Brunner said.
"It's not necessarily too late by then, but sometimes the plan for intergenerational transition, for example, may need to unwind over a couple of years, so there is a level of patience required for that type of process to be implemented.
"Although getting the conversation started can sometimes be difficult, there is always a need within the agricultural sector for this type of discussion.
"People who are running a family business and are looking to exit from that business, whether that's intergenerational or they are just selling it - that's the demographic we are looking for in these workshops."
The workshops, scheduled to be held in Margaret River on Thursday, May 27, Muresk on June 23 and Mt Barker on July 1, will address the legal rights of siblings, ramifications of failed succession planning, the power of the courts to unwind what they consider unfair agreements and options to address tax liabilities built into companies and trusts by utilising the latest rulings.
"Succession planning is important in many respects, not least of which is to minimise disruption to the business and minimise the cost that the transaction may otherwise encounter," Mr Brunner said.
"A common challenge in agricultural succession planning is where parents will have some children working on the farm and some children not working on the farm and what they think or perceive they need to do particularly in relation to their off farm children.
"We encourage people to come along to try and get an idea of how the process may work for them, some of the pros and cons and how their business structures can facilitate a smooth transition."
Tickets to the workshops are $35 per person or $50 per couple, with the evening including drinks and nibbles, followed by dinner at your own cost.
The workshop to be held at the Muresk Institute will dovetail into the WAFarmers Conference and Grain event.
Bailiwick Legal and Dry Kirkness both provide succession planning services.
- More information: contact Bailiwick Legal on 9321 5451 or Dry Kirkness on 9481 1118.