Archive for February, 2011

I will be at an upcoming farm transition and estate planning workshop in Austin.  It will be a good opportunity for farmers to sit down together and learn more about this important topic.  I’m happy to share information about local educational opportunities for farmers.  Thanks to Riverland Community College and University of Minnesota Extension for hosting this event!  If you’re interested, please see the conference details below and consider registering.

Are you struggling with how to transfer your farm
business to the next generation?

We’re pleased to invite you to attend “Farm Transition
& Estate Planning: Create Your Farm Legacy”, a
practical and in-depth workshop.

Presented by University of Minnesota Extension, this
5-hour workshop covers topics including:

Farm business transfer strategies
Tax issues related to the farm transfer
Wills, trusts, life insurance, power-of-attorney, and long-term care issues
Developing a written transfer plan
Treatment of heirs in the transfer process

“Farm Transition & Estate Planning: Create Your Farm Legacy” will be held:

Date: Monday, February 28th, 2011

Time: 9:00 AM Registration; 9:30 AM – 3:30 PM Program

Location: Riverland Community College, Austin West Building, Room A-237

Contacts: Farm Business Management Instructors:

Dan Hoffman 507-421-7167
Gary Thome 507-438-2019
Barry Kurtz 507-438-2126
Dave Marr 507-438-7076

Fee:
$30 per FBM enrolled families (one fee for multiple generations)
$60 per non-FBM enrolled family or business

Space is limited, so call today and register to attend this
valuable workshop!

If you’d like to learn more about this topic from home, check out this youtube video.  The show discusses some of the steps necessary to be successful when doing farm business transition and estate planning. Riverland Community College FBM Instructor, Gary Thome and U of M Extension Educator, Gary Hachfeld joined farmer, Dan O’Connor to share their thoughts and ideas on a recent episode of KSMQ “Farm Connections”.

As part of my work in farm law, I have been closely involved in a new and developing area of agricultural law in Minnesota: vineyard and winery laws and regulations. While at the 7^th Annual Minnesota Grapegrowers Association Cold Climate Conference, I attended a seminar hosted by the TTB about the new online Certificate of Label Approval (COLA) system.  It sounds like this system will make the process a bit easier during a very paper-intensive start-up process.

Federal law requires that all wine labels must be approved before being entered into commerce. Wine bottle labels are subject to many federal regulations, and compliance is checked by the TTB through its COLA process. For every single claim on a label, winemakers must be able to substantiate that claim with extensive records. As an example, the TTB representatives said that if there is a vintage date on a label, the winery must be able to track the wine from creation to bottle to prove that the vintage date is correct.

Previously, wine bottlers had only one choice to obtain label approval: a paper form.  While the paper COLA form is still available, the new online system has many advantages:

• No mailing delays
• Applications can be tracked at all times
• Fewer rejected applications
• The system is almost always accessible
• Applicants will be allowed a grace period to correct label errors before an application is rejected
• Corrected e-applications will be given priority consideration when resubmitted

The laws surrounding wine bottle labels are extensive and detailed. They are detailed in Part 4 of Title 27 in the Code of Federal Regulations.

Based upon the experience of the vintners at the seminar, you shouldn’t be surprised if your applications are judged rather inconsistently.  The TTB receives well over 100,000 applications for COLAs each year, and there appears to be a large element of human error in reviewing those applications.  In fact, the TTB employees at the seminar openly admitted that people couldn’t possibly review each label submitted and so applications are sampled for compliance.  Once samples are selected, reviewers may each have different interpretations of compliance with the law.  Some reported 10 or 15 labels being approved and one, nearly identical, being returned for errors multiple times.  The compliance checker in attendance at the conference warned attendees that if one label is rejected for errors, those same errors should be fixed in other labels as well.

It’s a complicated part of the wine selling process.  Don’t be afraid to ask for guidance from the TTB, your grapegrowers association, or your attorney about compliance.

I think it’s important that my clients know what to expect when they hire me, and part of that is knowing about my values.  I am a lawyer, and that means I will advocate for my client’s position.  You might think of me as a counseled adviser who speaks on your behalf.  I will uphold the law, and I will seek to make sure that you and the others involved in the process are treated fairly and with dignity.

And I will do those things for many reasons.

1) As a lawyer, I am required by law, by honor, by my profession, to uphold the laws of our country.

2) As a rural citizen, I believe that the best way to handle conflicts between people is to treat each person with respect.

3) And as a Christian, I am called to live a life filled with faith and love.

I will admit that I feel disheartened when I read lawyer jokes.  I know that it’s fashionable to be cynical, and that lawyers are “known” to be dishonest.  But I know differently.

I am not a shark.  I am a mother trying to raise children to be good citizens, people you can count on.  I am not a bulldog.  I stand up for what you and I believe to be right, and I do everything I can to make sure we get the outcome we want.  I am not vicious.  I am ready to help when you’ve reached the end of your rope, crying, and you don’t know what to do next.

I am not dishonest.  I am a lawyer, and I am the person you will call when you want to buy farmland that will ensure the continuation of your Minnesota family farm.  Your real estate closing will be done quickly and efficiently, so that you can carry on with your life.  I will be here when your loved one passes away without a will and you don’t know how to take care of all the probate paperwork.  I am ready when you have a great idea for a new business and you need help navigating the incorporation process.  I will be your advocate when you’ve upheld your end of a contract, but the other guy didn’t pay his debt.  I will help you as you make your estate planning decisions.  I will work with the community bank that is owned by a local family and exists to help the small town.

I am a lawyer, and I am hopeful.

If you, unlike many of the people I talk with, have a will, congratulations on doing some estate planning for the sake of your family.  If you have ever lived through a grieving process while attempting to settle a loved one’s affairs, you know how draining, time-consuming, and hard it can be.  For that very reason, many people try to plan ahead of time so that their family does not have to work through the Minnesota Probate Court system.

There are a variety of ways you can settle your affairs without proceeding through the probate court system.  Pay On Death and Transfer on Death designations on financial accounts can help to transition assets without the need for probate or even a will.  A variety of trusts may be used for tax planning, affair management, and estate planning purposes.  And if you own property, you might execute a Transfer On Death Deed (TODD) that will allow the property to pass outside of probate.  Depending upon the size of your estate and how you transition assets, your heirs may be able to avoid probate altogether.

Of course, every situation is unique and will require a unique solution.  The type of estate plan you put into place will be affected by many factors, including the size of your estate, the number and ages of your beneficiaries, the amount of tax to which your estate may be subject, what you’d like to do with your assets during your lifetime, how you’d like your assets divided, and a number of other factors.

The important message, though, is to start the process.  Make an appointment with an estate planning attorney and discuss your options.  Your family will certainly be thankful for your foresight.

Feel free to call or email my office for more information.