Why start early

Succession means handing the farm, and control of it, to the next generation. It is about family as much as money. This course covers the money conversation. It is general information only, not legal, tax or financial advice. Every family is different, so get advice from an accountant and a solicitor for your own situation.

Why early matters

Succession takes longer than most families expect. The WA Farm Business Resilience Program's succession guide says to start as early as possible, and not to wait until there's a crisis. It also warns not to expect it to happen overnight, as 2 to 5 years is likely.

Starting early gives you choices. With time, you can:

• Build up savings or other assets for the parents' retirement.
• Pay down debt before the farm changes hands.
• Let the next generation take on more of the management, one step at a time.
• Talk things through over several meetings, not one tense evening.
• Get advice and act on it without rushing.

Starting late, or after a death or illness, takes those choices away. Decisions get made under pressure.

What a good start looks like

A good start is not a finished plan. It is a first conversation, with everyone who has a stake in it. The WA guide suggests a first meeting, follow-up meetings, an agenda and notes of what was said and agreed. It also suggests using a professional to facilitate, which means running the meeting so everyone gets heard.

Our succession first conversation checklist sets out what to gather, who to invite and the questions to answer. We go through each part in this course.

Money first, or feelings first?

Both matter, and they're tied together. Many hard feelings in succession come from money questions nobody has answered. Can Mum and Dad afford to retire? Will the farm support the son or daughter coming home? Is it fair to the ones who left?

Clear numbers don't settle those questions. But they take the guessing out, so the family can talk about what really matters. That's where we'll start: getting the facts on the table.

Look after the business too

Handing on a farm that doesn't pay its way just passes the problem on. So part of starting early is checking the business is in good shape. Lesson 4 shows how.