In the fourth video of a farm succession series with Adirondack Land Trust, attorney Megan Harris-Pero joins Chris Jage in conversations about LLCs and trusts.

Harris-Pero explains that trusts are estate planning tools for personal assets, whereas an LLC is used for businesses. LLCs are popular with farmers because of their flexibility, but Harris-Pero says they also stay in place after a farmer passes. This helps keep the farm running and avoids issues around buy-sell agreements, including partition sales.

Comparing revocable and irrevocable trusts to a farmer’s truck and tractor, she goes through the benefits of each, including why many farmers can save money by putting both an LLC and a trust in place.

Of particular concern to farmers: why land assets can be tricky in qualifying for Medicaid and the New York State STAR exemption. Harris-Pero also addresses limitations of using a life estate, why farms may use multiple LLCs for different businesses or heirs and why a DBA doesn’t provide liability protection.

Be sure to check out additional resources for farmers at the end of the video.