Legacy PlanningCarrying Stewardship Forward: Love Your Land? Make A Plan.

Presentation prepared by:The Cornell and Penn State

Legacy Planning Team

Who Owns Our Forests?

There are more than 750,000 private forest landowners* in PennsylvaniaThey manage nearly 70% of the state’s forestsMost forest landowners (over 65%) own less than 10 acres

* Who own at least one acre

The future of Pennsylvania’s forests depends on the stewardship of private forests, given threats from its fragmentation and development

Forest Stewardship…is the wise management and use of our forest resources to ensure their health and productivity for years to come

Most landowners express a commitment to the land and want to be “good” stewards

They do this by caring for the soil, water, plants, and wildlife

Ownership objectives may take years to achieve

The Longer View: Legacy Planning• With myriad reasons for owning forestland (often not

tied to producing income), sometimes it’s difficult for landowners to think beyond their tenure.

• While current owners cannot control what happens on the land beyond their tenure, they can take steps to guide its stewardship

Thus, forest stewardship depends on the creation of a legacy plan to guide future management decisions

The Threat of Ownership Changes One of the most persistent threats to land stewardship happens when it changes ownership

Changes in ownership often result in management and use decisions that do not reflect the previous owner’s goals

• we often see major activities such as timber harvesting, subdivision, and selling of parcels of land to recoup costs

There are ways to influence how stewardship of the land continues

Legacy Planning: Intention vs. ActionWhile 80% of forest owners plan to keep forestland in the family…

• Only 40% have discussed the plan with their children• Only 35% of children are involved with the current

forest plan

Even fewer landowners have a plan in place

Land and MoneyWithout a plan, land may be lost in the future to

• Development• Conversion to non-forest uses• Unplanned sale of timber to generate

cash for estate taxes• Land sale to pay estate taxes

Money concerns are the #1 reason why land may not stay within family

• For example, heirs can’t afford taxes or current owners need retirement income or funds for nursing or long-term care

How Many of You Have…• A long-term forest management plan?

• A will?

• An estate plan?

• A business plan that will survive your death, such as a

limited liability company?

• Discussed your long-term goals with your spouse, your

children or your heirs?

• Groomed a successor?

Legacy Planning

Leaving a LegacyPlanning for the Future

Caring for the Land

…is carrying forest stewardship into the future

Implementation of an Estate Plan

Communication of Your Plans

Long-term Stewardship

= Legacy Planning

A Formula for the Future

Long-Term Stewardship• Many landowners have a plan

in their heads, but few have a written plan

• Legacy planning extends your plan beyond your tenure

Family or Future Land ManagersBeneficiaries are a part of the long-term strategic plan for your woodlands

• Share and refine the stewardship plan with family members and/or other successor(s)

• Create a cooperative environment where everyone “buys-in” to the plan’s goals

Legacy PlanningLegacy planning is comprised of land stewardship, ongoing communications with the next owner(s), and estate planning

The written plan contains the legal documents and planning tools necessary to achieve your vision

It is a strategic planning process to achieve a collective vision for the property and to create a smooth transition between you and future owners• Together, you determine how the land will be

managed

Estate PlanningEstate planning uses the legal tools available to ensure your legacy plan is successfully carried out

A will is one of those tools, specifying how your estate, the total of all your assets, will be distributed

Implementation of an Estate Plan

Communication of Your Plans

Long-term Stewardship

=Legacy Planning

Legacy planning extends your plan beyond your tenure

The Ten Steps in Legacy Planning

1. Commit

2. Gather

3. Record

4. Discuss

5. Seek assistance

6. Consult

7. Research

8. Develop

9. Review

10. Create

Step 1: Make a Commitment….to your land and its management. It’s never too late nor too early to involve future owners in the use, management, and enjoyment of your land.

Image courtesy of Carl Martin, PAFS

Step 2: Gather Information

• Topographic maps of the property

• Other property information (like acreage details, zoning, roads)

• Stewardship action plans• Records of previous activities

(like harvests and plantings)• Lists of engaged individuals and

companies who have worked on the property.

about your land and other assets in preparation for a meeting with your family or other beneficiaries of your land.

Step 3: Write Down Your Interests and Develop Your Goals

….for the property based on your values.

Ask Yourself:• What do I love about my woodlands?• What do I want for the future of my

woodlands?

Write down what you value; make it concrete for yourself

Step 4: Discuss Goals with Your Family or Future HeirsDevelop a shared vision for the future of the land.

Ask your heirs what they love about and hope will happen to the land

‒ Listen and learn

Articulate what you love about and hope will happen to your forestland

Develop a shared vision

What Should I Be Communicating?Ask Yourself:• What do I want for the future of my woodlands? • What do I hope for the land after I am gone?

Then ask the same questions of your beneficiaries

The intent is to understand the values and visions for the land held by those you hope will carry your stewardship plan forward. Develop shared goals for the future of the land.

Getting Communication Started Some Resources that may help you:• Legacy Planning Case Study Videos• Forest Story Cards• Ties to the Land • Your Land, Your Legacy

The conversation happens over time.

It is a process, not a single meeting.

There are more complete references for these resources in the ‘Know Your Legacy Planning Resources’ handout

Step 5: Seek Help From a Natural Resources Professional

Start with a forest consultant who can create a stewardship action plan for your woodland.

State service foresters are also a good starting place. They can provide information and resources, but cannot do any of the work for you.

Step 6: Consult with Qualified Legal/Financial ProfessionalsExamples:

‒ a tax or estate-planning attorney ‒ an accountant‒ a financial/investment advisor ‒ a land trust specialist

• Find professionals who are competent and understand your situation as a forest landowner. • Ask for referrals from friends, neighbors, or people who belong to your

local forest owner association.• Be sure that your goals for the land are clear before turning to these

professionals.

Step 7: Access Unbiased, Research-based Information

Contact sources such as Cooperative Extension. Ask questions and connect with other landowners through regional and county woodland owner groups.Learn as much as you can about your land

Step 8: Develop a Business Model that will allow the next owner to keep the property intact and functional.

Potential options:• Limited Liability Company (LLC)• Conservation easement• Family Limited Partnership (FLP)• Other (refer to the handout)

Step 9: Discuss your options and record important decisionsWrite it down!! Don’t keep it in your head.Have an ongoing written record, and make sure that you keep your plan up-to-date.Your records will also help future owners know what’s been done and what you intended.

Step 10: Create Fond MemoriesGet your family and friends out to work and have fun on the property.

A personal connection to the land is the foundation upon which all good stewardship occurs.

The Ten Steps in Legacy Planning

1. Commit

2. Gather

3. Record

4. Discuss

5. Seek assistance

6. Consult

7. Research

8. Develop

9. Review

10. Create

Legacy Planning Team• Heirs or Future Owners• Consulting Forester• Financial or Investment Advisor• Attorney• Accountant

Web resources – search using keywords such as:

• “Legacy Planning”• “Legacy /Forest Estate Planning”• “Legacy Planning Services”• “Legacy Advisors”• “Legacy Wills”

Website ResourcesCornell Cooperative Extension has created an online forum for communication between landowners and resources for your use: SuccessionPlanning.Ning.com

• Read about other landowner experiences• Ask questions and connect with other landowners• View a directory of estate planning professionals recommended by other

landowners

And Penn State Extension has articles and similar resources available at: extension.psu.edu/legacy

What Can You Do?Articulate what you love about and hope will happen to your forestland

Write down what you valueMake it concrete for yourself

Ask your heirs what they love about and hope will happen to the land

Listen and learn

What Can You Do?• Seek out resources and tools that can help

you make a plan• Learn about options and ask for advice

from those who have successfully planned• Communicate with those you expect to

carry your stewardship forward• Work together to:

‒ Create a plan of action and implement it

‒ Decide on alternatives‒ Enjoy the land ‒ Create memories that will

extend long into the future

Thoughts and Discussion?

• http://SuccessionPlanning.Ning.com• http://extension.psu.edu/legacy

For more information, visit:

The Penn State and Cornell Legacy Planning TeamShorna Allred

Associate ProfessorCornell U. Dept. of Natural Resources

Peter SmallidgeSenior Extension Associate

Cornell U. Dept. of Natural Resources

Gary GoffSenior Extension Associate

Cornell U. Dept. of Natural Resources

Maureen MullenExtension Aide

Cornell U. Dept. of Natural Resources

Jim FinleyProfessor Forest Resources

Penn State U. Dept. of Ecosystem Science and Management

Allyson MuthForest Stewardship Program

AssociatePenn State U. Dept. of Ecosystem

Science and Management

Andrew PurringtonDoctoral Candidate

Penn State U. Dept. of Recreation, Park, and Tourism Management