Estate and Financial Planning education for Socially Disadvantaged Producers, and Real Estate owners in Arkansas

Transcription

1 2010 Competitive Grant Program Final Report Estate and Financial Planning education for Socially Disadvantaged Producers, and Real Estate owners in Arkansas Project Number: Funded Amount: $31,273 Submission Date: Pending Project Director Henry English Small Farm Director University of Arkansas at Pine Bluff 1200 North University Drive Pine Bluff, AR Mailing Address University of Arkansas Pine Bluff 1200 North University Drive Mail Slot 4906 Pine Bluff, AR Fax:

2 Financial Contact University of Arkansas at Pine Bluff Controller 1200 North University Drive - Mail Slot 4984 Pine Bluff, AR Co-Project Director(s) Rita Conley Instructor University of Arkansas at Pine Bluff 1200 North University Drive Mail Slot 4913 Pine Bluff, AR conleyr@uapb.edu Project Contact Kelly Luckett University of Arkansas Pine Bluff luckettk@uapb.edu

3 Project Overview This project was designed to provide estate education to socially disadvantaged producers (SDPs) and rural homeowners. Consequently, eight estate s were conducted. These s were conducted in Southeast, Southwest, Northeast and East Central Arkansas. Approximately 240 individuals attended the s. The participants were very interested in the information. They asked many questions throughout the s and sometime even after the. For those producers who wanted to transfer their farms to the next generation, they learned that 90 percent of farms didn t go to the next generation due to a lack of management experience of the heirs and because of family fights over assets division. The producers learned that succession required input from family members, and an attorney. They also learned that partition sales often occur when land became fractionated (multiple owners from lack of ). These s helped participants to realize that they needed an estate or succession plan to carry out their after death wishes and goals. In the follow up telephone calls to participants we found that about 20 percent were actively working on their estate plans (gathering personal information, financial information, and their wishes/goals). Number of Participants Number of Participants: 240

4 Results Prosed Result Tic Producer action 1 Participants will understand what estate is and the importance of implementing an estate plan. 2 Participants will understand how prerty or assets in Arkansas are distributed when an individual dies without a will or estate plan. 3 Participants will understand how prerty ownerships (tenancy in common, sole ownership, and joint tenancy) affects estate. 4 Participants will understand the legalities of heir prerty, and how it may lead to partition sale, which may result in land being lost from the family. 5 Participants will understand the alternatives to preserve and protect heir prerty as well as business structures for transferring farms. 6 Participants will better understand the importance of the financial strength of their farm business in the transfer process. 7 Participants will better understand the role of life insurance, power of attorney, and long term care in the estate and transfer process. Transition and estate Transition and estate Personal and business liability Business and strategic Transition and estate Financial records and analysis Transition and estate Understand Understand Understand Understand Understand Analyze Understand When measur ed each Worksh Estimat ed numbe r Actual number How verified Pre/Post Assess ment Pre/Post Assess ment Pre/Post Assess ment Pre/Post Assess ment Pre/Post Assess ment Written Evaluati on Written Evaluati on 8 Participants will Personal and Understand Pre/Post

5 Prosed Result Tic Producer action understand the need to update their deeds/titles to reflect the correct owner (remove the names of deceased individuals) of the prerty they erate. 9 Participants will begin to contact heirs in an attempt to devel an estate plan. 10 Participants will update their deeds/titles to reflect correct owners of real prerty. 11 Participants will prepare a will or a trust for the handling of their estate after death. 12 Participants will select professionals (attorneys, accountants) to assist with the develment of an estate plan. 13 Participants will have completed a farm business financial analysis using the FINPACK Financial program. business liability Transition and estate Personal and business liability Personal and business liability Transition and estate Financial records and analysis Implement Implement Devel Decide Devel When measur ed One year after One year after One year after One year after Six months after Estimat ed numbe r Actual number How verified Assess ment 20 0 Phone Intervie w 60 0 Written Evaluati on 20 0 Phone Intervie w 5 0 Phone Intervie w 20 0 Written Action Plan

6 Project Steps What project team does What participants do Done? Actual number of partici pants 1 Project team will design and devel an estate curriculum including powerpoint presentations and workbook for SDPs and their extended families with the assistance of an attorney. 2 Project team will devel a manual consisting of estate materials for the participants. 3 Project team will advertise the s through producer direct mailings, by distributing promotional flyers to churches, community based organizations, and local FSA offices. Public service announcements will be distributed to all media outlets in the four areas. 4 Project team will conduct the s for the participants. 5 Project team will ask the participants to complete an evaluation form. 6 Project team will follow-up with participants regarding their goals and desire to continue a systematic plan with assistance from extension associate. 7 Project team will meet with participants to devel a plan for handling their estate. Key SDPs/participant leaders will review the curriculum and give comments about its content and usefulness. Key participants will review for content and usefulness Participants will determine if they will attend. Participants attend s will recieve manuals and other educational information, ask questions and devel goals. Participants will complete evaluation form and give additional comments. Participants will agree to continue estate process and/or conduct business analysis and schedule a follow-up meeting with the extension associate. Participants will receive an estate workbook, read the workbook and begin collecting information,contacting heirs. When Completed 5 Within four months of project start-up 5 Within 5 months of project startup 240 Two weeks prior to Two weeks after 12 within 2 months after

7 Promotional Materials Estate Planning For Farmers and Homeowners Flyer UAPB Small Farm Project Farm Sense Newsletter Rural Life onference set for February 18 Newspaper Article

8 Educational Materials Agricultural Estate Planning Who Needs An Estate Plan?

9 Evaluations and Reports Estate and Financial Planning Education Survey Comment: This survey consists of 29 multiple choice questions that are divided into five different tic areas and they are Financial Management, Insurance, Estate Planning/Business Transfers, Legal Issues and Demographic Data. Date of Evaluation/Report: This Evaluation/Report is available to the public. Estate and Financial Planning Education Survey Comment: This survey consists of 29 multiple choice questions that are divided into five different tic areas and they are Financial Management, Insurance, Estate Planning/Business Transfers, Legal Issues and Demographic Data. Date of Evaluation/Report: This Evaluation/Report is available to the public.

10 Project Comments Describe any unexpected results of the project: We did not expect the recruitment of producers to be as hard as it was. The attendance was much lower than expected especially when we en up the s to other rural residence individuals. Many of these individuals were expected to have housing problems (heir prerty) that affected their ability to participate in the USDA Home Purchasing, and Home Improvement Loans Program. There are many farm families that have completed business organizations structures that work for them to transfer land to the next generation, and to sustain the productivity of their land for family income. These families are very interested in sharing their expertise with others that are in the beginning/ stage of their succession plan. These individuals also offer an portunity to disseminate information to a wider audience in rural areas. How would you improve this project if you were to do it again? If I had to do this project again I would include additional presenters. We basically used one presenter, our attorney. To improve on the project I would include a presenter from USDA to talk on how heir prerty affect the use of USDA Programs, and I would include individuals who were using different business structure as part of their succession plan to speak on their plan. We could have also improved the project by setting up and advertising over a longer period of time and allow walk-in to discuss estate one-on-one. We could also have split the project into phases. Phase one would be general education for everyone and Phase two would be targeted for participants to register for in-depth training and technical assistance. The second group would be individuals indicating their interest in completing an estate plan and those interested in farm financial. What were the keys to success for your participants? The first key to success was having access to legal advice on general issues participants were facing with prerty/business transfer and second the were located near their residence, and finally, providing information and real cases of how heir prerty issues had been resolved. We expect to see most of our participants with estate plans during the next year (2013). This is because we feel that many participants are currently gathering their thoughts and information together for their estate plan. We estimate that only a few individuals develed estate plans this first year. However, for participants to be successful they should not procrastinate, the key to success is to set a timeframe in which the estate plan will be completed and stick to that plan.

11 Individual stories / Examples of success / Quotes One lady came to the meeting in Dermott with her will. After attending to the, and asking many questions, she changed her will. This individual had included her funeral arangement in her will, she was advised to remove the arranements. Another individual went and had a living will develed after learning about wills.

12 Leveraged Resources ERME grant funds allocated: 31,273 ERME grant funds expended: 31,273 Other funds used for the project: 0 Non cash resources: 0 Delivery Area This project was delivered in 4 locations in Arkansas. Chicot, Hempstead, Jefferson, Phillips