Time to Get Started on Succession Planning by Rich Merk
Families own roughly 42% of all forests in Maine, and 45% of those woodlands are owned by people 65 years or older. This amounts to about 4 million acres. These facts would not be alarming if there were succession plans in place for what is going to happen to these woodlands in the future.
In a recent University of Maine survey done in Kennebec County, survey respondents provided the following information: Most want to give the land to people in their families, and 60% want their forests to stay the same as they are now. But of those who want the woods to remain the same, 73% have not talked to their families about their wishes and only 1% has put them in writing. Many, about 41%, don’t even have a simple will. The survey clearly shows that most owners of Maine woodlands need to start planning for transfer of ownership and stewardship of their land.
None of us likes to think about our eventual passing, and yet we need to make the effort to plan for how our wishes for our land will be followed, and by whom. A simple solution is to leave the land to children or beneficiaries of a will (if one exists). But that still leaves many questions unanswered and only solves the question of who will be the next generation of owners.
Current owners may not have spoken to their children to see if they want this responsibility. They may not have documented their wishes nor had discussions about who will make land management decisions, or determine if the heirs can work and manage the land together. Owners may not know whether the children have an interest in forest management, or whether they can afford to keep the land, perhaps preferring instead to use it to meet their own family’s expenses and needs.
The present situation leaves a lot of the small woodlands at risk of change of use, or poor management in the future. It does not prepare future owners to carry out the wishes of current owners. And it increases the chance that there will be family disagreements, which could result in a decision to quickly sell the land and split the proceeds.
A simple will conveyance does not preclude the land from being split into smaller parcels that are less easily managed. And it doesn’t ensure the land will continue to be used as woodlands to benefit the rural economies, recreational activities, and provide clean air and water and habitats, as its current owners have done during their stewardship. Finally, the transition of ownership needs to fit into estate planning so the best tax results and benefits can be achieved.
Developing and implementing a succession plan for a family forest does not have to be expensive, or take a lot of effort. But some effort has to be made by the current owners, and the sooner the better. To help small woodland owners, Maine Woodland Owners has decided to provide informational meetings on succession planning around the state to explain the options of future ownership, and how woodland owners can plan and implement their wishes. The meetings will provide tips on how to make a clear and thorough transition. Maine Woodland Owners will also provide several six-hour workshops for small woodland owners who want to implement the process of planning and transition.
There’s a lot to understand, and do, to accomplish the desired transition to the next owners- whether the land stays in the family or goes to someone else. Properly done, owners can help decide how their land will be used and managed.
Don’t wait until it’s too late to plan for your land’s future. Please think about your own succession plan, and if Maine Woodland Owners can help, please participate in our informational meetings and workshops, or contact us with your questions. We can help you continue to be good stewards of your land well into the future.