What to gather

Before the first family meeting, gather the facts. It saves time, and it stops the talk going round in circles on guesses.

The financial statements

Get the farm's last three years of financial statements from your accountant. These are the profit and loss, which shows income, costs and profit for the year, and the balance sheet, which shows what the business owns and owes on 30 June. Three years is better than one, because a single good or bad season can give the wrong picture.

Assets and debts

Make a list of everything the family owns and owes. Assets are things of value, such as:

• Land, with the title details
• Livestock
• Plant and machinery
• Cash, shares and farm management deposits
• Off-farm assets, like a house in town or super

Debts include term loans, the overdraft, equipment finance and any loans between family members. Our assets and liabilities spreadsheet gives you a layout to fill in.

Who owns what

This one surprises people. The farm is often not owned by one person. Land might be owned by the parents personally, while the stock and machinery belong to a family trust or a company. Some land might be in one name and some in another.

For each asset and debt, write down who owns it or owes it: which person, company, trust or partnership. A trust is an arrangement where a trustee holds assets for the benefit of others. A company is a separate legal entity. How each one works, and what it means for succession, is a question for your accountant and solicitor.

Wills and legal documents

Find any existing:

• Wills, one for each person
• Powers of attorney, which let someone act for you if you can't
• Partnership agreements
• Trust deeds, which are the rules for each trust
• Company constitutions or shareholder agreements
• Leases or other agreements over the land

You don't need to understand every clause. Just know they exist, where they are and when they were last updated. Your solicitor will read them closely.

Keep it in one place

Put copies in one folder, on paper or on a computer. Share a summary with everyone who will be at the meeting, so you all start from the same facts. Some families find this step tense. It helps to agree up front that the list is just facts, not decisions.