Estate and Transition Planning

By: David Marrison, OSU Extension Field Specialist – Farm Management

OSU Extension has a long history of helping farm families with transition and estate planning. While most would agree this kind of planning is vital for the future success of the farm, it often gets delayed or doesn’t happen at all, for a variety of reasons.

So why the delay?

• Families often cite reasons such as:  
• Not enough hours in the day to get everything done.
• Not comfortable talking about death.
• Don’t know how to develop a plan.
• Don’t understand all the legal jargon.
• Legal and tax professionals are too expensive.
• We don’t agree on what to do.
• It might cause family conflict.
• Our family communication about sensitive topics is poor.

So, what would be on your list? For most, the top two reasons are the lack of time and a history of poor communication around difficult topics. So, how can we overcome these obstacles? Maybe one strategy this fall is to use the buddy seat to our advantage.

Buddy Seat

A buddy seat, sometimes called a passenger or instructional seat, is an extra seat inside the cab of farm equipment like a combine or tractor. It is there so someone else (like a child, grandchild, trainee, or helper) can ride along safely with the operator. It is a great way to teach someone the ropes or spend some quality time together during long hours in the field.

I recently read an article by Raney Rapp called “The Buddy Seat Barometer” which explores how the buddy seat has become an informal rite of passage in farm dating. Rapp explained that a few minutes or hours in a buddy seat can show you a lot. You will see the good, how someone handles stress, and how the family works together. Rapp remarked that the buddy seat is a good barometer to see if this life and person might be the right fit.

So, beyond the dating world, could the buddy seat be used to create deeper connections? What if we used the buddy seats in our combines, trucks, and tractors as places to have more intentional conversations?

Levels of Conversations

First, let’s look at the level of conversations we typically have. In his book "Why Am I Afraid to Tell Your Who I Am?” John Powell outlines five levels of communication (See Table 1). Most of us tend to stay at levels five and four, the safer levels of cliché or factual conversations. These conversations are safe and polite with little emotional risk.

As conversations progress to levels three and two, conversations become more personal as we begin to share what we think or feel. Peak communication or level one communication is rare and precious. It occurs when people feel safe enough to be deeply honest and to share fully. It requires trust, respect, and love.

So, where would you rank your communication with family members and your farm team?

Table 1: Levels of Communication

Level	Type	Description	Farm Example
5	Cliché	Small Talk	“Looks like we’ll get rain this weekend.” “Boy, the corn market is down.”
4	Facts	Giving Updates	“We vaccinated the calves this morning.” “We’ve only had 1 inch of rain since July 1”
3	Ideas and Judgements	Sharing Thoughts	“I think switching to organic would allow us to increase our return per acre.” “I don’t think my brother is ready to manage the farm in the future.”
2	Emotions	Sharing Feelings	“I’m tired of feeling like I’m not heard.” “It hurts that Dad doesn’t ask for my input before buying new equipment.”
1	Peak Communication	Deep honesty	“I worry I’ll be the one who loses the farm.” “I fear our family dynamics might push my spouse away.”

From “Why Am I Afraid to Tell Your Who I Am?” – John Powell

Elevating Your Buddy Seat Conversations

Of course, the top priority during harvest is to get the crop harvested and to do it safely. However, buddy seat conversations can offer opportunities for deeper, more intentional communication.

One strategy is for both the driver and the buddy to be more intentional in the questions they ask. During our “Planning for the Future of our Farm” workshops, we encourage families to plan their farm’s future through questions as a discussion guide. Here are some ideas for questions to get conversations going this fall.

The Legacy of the Farm

The buddy seat is a great place to reflect on the history of the farm. These reflections can build understanding and appreciation for the sacrifices which got the farm to where it is today. Some questions that can help family members examine farm legacy could include:

• How did the farm get started and who were the first family members involved?
• What are you most proud of when you think about our farm’s history?
• What values or principles have guided the way you have operated the farm?
• How did the farm shape the way our family grew up and lived?
• What were some of the biggest challenges you faced over the years, and how did you overcome them?
• What have been the hardest weather events or years? Can you tell me about the blizzard of 1978?
• Who have been your best mentors in farming and what did they teach you?
• How have farming practices changed since you started and which changes were hardest to adapt to?
• Were there times you considered walking away from farming? What made you stay?
• What advice would you give the next generation of farmers in our family?
• What do you hope the next generation understands or carries forward?

Our Farm’s Future

Most farm families hope to see the operation successfully pass to the next generation. The buddy seat can be a great space for generations to talk about the future. These conversations can be vital as the family develops its transition plan.

• What are your vision and goals for the farm in the next 10, 20, or 50 years?
• What parts of the farm operation are you most passionate about? What would you change or grow?
• Are there new technologies, crops, or practices you are interested in exploring?
• What kind of support or guidance would help you take on more responsibility?
• What traditions or values are most important for you to continue?
• What concerns or worries do you have about taking over the farm?
• In what areas would you like more training?
• What do you want your kids or nieces/nephews to understand about the farm?
• How do you see personal and family life fitting in with the future of the farm?
• What will success look like to you as the future leader of this operation?

Family Relationships

Farming is more than land, crops, and livestock. It is deeply tied to family. Honest conversations among siblings, spouses, and generations are crucial to avoid conflict and to build trust. Buddy seat conversations can also be a natural space to check in.

• What are three things you are grateful for?
• What’s something I say or do that makes you feel appreciated?
• What’s your role on the farm and do you feel it’s recognized?
• What has been your happiest day on the farm?
• How do you prefer to communicate when something’s wrong or frustrating?
• Are there ways we could better divide responsibilities to avoid stress?
• Do you feel heard and respected in farm decisions?
• How would you prefer to handle conflict when it comes up?
• How can we better balance work and family life, especially during busy seasons?
• How do you see us as siblings, spouses, or family involved in the farm’s future?
• What is on your bucket list?

Our Farm as a Workplace

Conversations with employees can also help create a healthy, respectful, and productive work culture. When employers ask for honest feedback, it improves morale, retention, and day-to-day operations. Here are a few questions to ask employees this fall:

• What do you enjoy most about working here?
• What do you see as our farm’s strengths?
• What is one change that could make the farm more efficient?
• Are there any safety concerns we should address?
• Is communication clear about your tasks or expectations? How could we improve?
• Are there any tools, equipment, or systems that you think could help us work more efficiently?
• What kind of support, such as training, equipment, or scheduling would help you succeed?
• What would make this job more satisfying or sustainable long-term?
• Is there anything you would like to learn or grow into here?
• What task or tasks do you enjoy the least on the farm?
• As an employee, are there any additional benefits that you would like us to consider?

Put The Buddy Seat to Work This Fall

As we settle into another harvest season, the buddy seat gives us more than just a place to ride. It offers a chance to connect, reflect, and look ahead. Whether you are talking about the farm’s legacy, its future, or just checking in on one another, buddy seat conversations matter. So, this fall, let’s turn our buddy seats into spaces of meaningful dialogue. Because the best place to start planning for the future of the farm... is one honest conversation at a time.

References

Powell, John. Why Am I Afraid to Tell You Who I Am? Grand Rapids, MI: Zondervan. ISBN: 000-628105-2

Raney Rapp, “The Buddy Seat Barometer” (September, 2025). Farm Progress. Accessible at: https://www.farmprogress.com/commentary/the-buddy-seat-barometer

OSU Farm Office Resources. Planning for the Future of the Farm. Resources accessible at: https://farmoffice.osu.edu/farm-transition

The author would like to thank OSU Extension colleagues and AI-assisted drafting tools for helping refine the ideas presented in this article.

 

 

Planning for the future of a farm involves much more than deciding who will operate the business or inherit the land. It also means making decisions about your personal care if you cannot speak for yourself. Few topics are harder to consider than end-of-life treatment, but addressing them in advance can save loved ones from confusion and  conflict at a difficult time. Two legal documents are especially important for these decisions: the Health Care Power of Attorney and the Living Will Declaration.

The Health Care Power of Attorney

A Health Care Power of Attorney (HCPOA) is a document that allows you to appoint another person, your agent, to make health care decisions for you if you cannot. Ohio law gives your agent authority to act just as you could, unless you specifically limit that authority.

With an HCPOA in place, your agent may:

• Schedule and cancel medical appointments.
• Communicate directly with doctors and nurses.
• Choose among treatment options.
• Decide where you receive care, including long-term care.

The document can also contain instructions about life support. For example, you may authorize your agent to refuse artificially supplied nutrition or hydration if you are permanently unconscious. Importantly, your HCPOA only takes effect if a doctor determines that you have lost the ability to make informed health care decisions. Until then, you remain fully in control.  You may revoke or change your HCPOA at any time before death, and it terminates upon death.

The Living Will

While an HCPOA puts decisions in the hands of a trusted agent, a Living Will Declaration communicates your own choices directly to your doctor. It applies only if you are either:

• In a terminal condition (an irreversible, untreatable condition from which recovery is not possible), or
• In a permanently unconscious state (an irreversible condition in which you are permanently unaware of yourself or your surroundings).

If two physicians confirm one of these conditions, your Living Will directs your doctor to provide only comfort and pain management care and to allow you to die naturally. It tells your doctor not to use CPR, ventilators, or artificial nutrition and hydration.

Do You Need Both?

Ohio law allows individuals to have both an HCPOA and a Living Will, but a Living Will is optional. If your HCPOA includes clear instructions about life support, you may feel that a Living Will is unnecessary. On the other hand, some people prefer to state their wishes in writing through a Living Will so there is no doubt about their preferences.

If you choose to have both documents, make sure they do not conflict with one another. Contradictions can create confusion for health care providers and family members at the worst possible time.

Reviewing and Updating Your Documents

Advance directives are not one-and-done paperwork. They should be reviewed regularly, especially when there are major life or family changes. Ask yourself:

• Do I still trust the person I appointed as my agent?
• Does my HCPOA reflect my current wishes about life support?
• If I have both an HCPOA and Living Will, are they consistent?
• Do my loved ones know where to find these documents?

As farms transition to the next generation, reviewing these documents should be part of the planning process. Just as you would update your will or business agreement, updating your health care directives ensures your wishes are clear and enforceable.

Communicating Your Plans

Even the best-drafted documents cannot do their job if no one knows they exist. Consider sharing copies of your HCPOA and Living Will with:

• The people you have appointed as agents.
• Your doctors and medical providers.
• Family members who may be present in a crisis.

Talk openly with your family about your choices. They may not agree, but knowing your decisions ahead of time will reduce stress and help prevent conflict.

Standardized Forms Are Available

Ohio’s medical and legal communities have worked together to create standardized forms for the Health Care Power of Attorney and Living Will. These forms are widely accepted by doctors, hospitals, and attorneys in Ohio, and they are available online at no cost. While it is possible to complete the forms on your own, farm families should consider working with an attorney to ensure the documents are done correctly and coordinated with the rest of their estate and transition plans.

Planning how to pass on the farm to the next generation can be one of the most challenging tasks for a farm family. Parents often want to recognize the hard work and commitment of a farming heir while still treating non-farming heirs fairly. The difficulty is that most of a family's wealth is usually tied up in farmland and operating assets. If all the farmland is left to the farming heir, non-farming heirs may feel shortchanged. But if farmland is split among heirs, the farming operation can lose access to land needed to sustain the business. Non-farming heirs may wish to inherit land for sentimental or financial reasons, yet their ownership could lead to conflicts over leases, sales, or use of the property that disrupt the farm’s future.

These decisions can become emotional as well as financial. A farming heir often contributes years of labor with the understanding they will one day operate the farm. Non-farming heirs may feel entitled to an equitable share of the family wealth, even if it means dividing farm assets. Options like requiring a buyout by the farming heir can create additional financial stress and may not be realistic given high land prices. Many families struggle to balance fairness to all heirs with the need to preserve the land base for a viable farming operation.

A new bulletin, Using Long-Term Leases in Farm Transition Planning, explores one way to resolve this challenge. A long-term lease allows parents to leave farmland ownership to a non-farming heir while granting the farming heir a secure, extended right to farm that land. This strategy protects the farmland base for the farming heir, provides rental income to the non-farming heir, and helps the farming heir avoid the high cost of purchasing additional farmland. The publication explains how long term leases work, the advantages and disadvantages of this approach, and considerations for setting lease terms that work for both parties. It includes practical examples of how families can use this strategy in their transition plans, as well as the importance of adjusting rent over time and consulting legal counsel before finalizing an agreement.

The bulletin is part of the Planning for the Future of Your Farm series and is now available on the Farm Office website.

Jimmy Buffett, the legendary singer-songwriter and businessman, passed away in 2023 leaving behind a substantial estate reportedly worth around $275 million. Recently, reports have surfaced that his widow, Jane Buffett, has filed a lawsuit against her co-trustee and Jimmy’s long-time business manager, Richard Mozenter. The dispute offers a high-profile example of several key estate planning issues:

• How trusts can be structured to provide for a surviving spouse
• The responsibilities, and potential pitfalls, faced by trustees
• The everpresent risk of conflict, even in well-planned estates

The Trust

The estate plan developed by Jimmy and his legal team followed a common structure used by millions of married couples. Upon Jimmy’s death, his assets were transferred into a trust. For the remainder of Jane’s life, she will receive all the income generated by the trust. After her death, the remaining assets will be distributed to their children.

This type of trust is often referred to as a marital trust, or more specifically, a Qualified Terminable Interest Property (QTIP) trust. A marital trust offers several benefits but the primary ones are deferring estate taxes, providing income and protecting assets. While most couples use a marital trust to achieve one or two of these goals, Jimmy’s plan appears to have been designed to accomplish all three. Let’s take a closer look at each of these benefits.

Deferring Estate Taxes

Jimmy’s $275 million estate far exceeded the $13 million estate tax exemption available in 2023. As a result, approximately $262 million of his estate would have been subject to estate taxes, potentially causing a tax bill of over $100 million.

However, the IRS allows these taxes to be deferred if the assets pass directly to the surviving spouse or are held for their benefit. In this case, the marital trust held the assets for Jane, deferring the estate tax until her death. Jane was not responsible for paying the $100 million estate tax bill but her children will be when they inherit the trust assets after her passing.

Marital trusts are a powerful tool for protecting the surviving spouse from an immediate estate tax burden. But it’s important to remember this is not a tax savings strategy, it’s a tax deferral strategy. The estate tax will still be due when the surviving spouse dies.

Providing Income

The assets held in a marital trust are typically structured to create income for the surviving spouse. To qualify as a marital trust, IRS rules require that all net income be distributed exclusively to the surviving spouse, at least once per year.  In this case, the income generated by Jimmy’s trust must be distributed to Jane annually. As we’ll explore in more detail later, it is net income, the amount remaining after trust expenses are paid, that is distributed to the spouse.  Provided the marital trust holds assets that produce income, the surviving spouse will receive a reliable stream of income for the remainder of their life.

Protecting Assets

Finally, a marital trust can help protect assets from mismanagement. According to court filings, Jimmy had concerns about Jane’s ability to manage his vast and complex holdings. This is a common issue as surviving spouses may lack the same business experience as the deceased spouse. A marital trust can help ensure the assets are properly managed, providing a steady income for the surviving spouse and preserving the remainder for the children’s inheritance.

In many cases, the surviving spouse serves as the sole trustee, giving them full control over asset management. This approach is common because it’s efficient and avoids the need to involve a third party. However, Jimmy took a different route. He appointed an independent trustee to serve alongside the surviving spouse. In this case, Mozenter serves as the independent trustee and appears to be primarily responsible for managing the trust assets and distributing income to Jane.

Whether a single trustee or multiple co-trustees are used, the role of trustee is critical. The trustee ensures the marital trust fulfills its intended purpose: supporting the surviving spouse while preserving the estate for future beneficiaries.

Welcome to Litigationville

So what caused a legitimate and common estate planning strategy to end up in Litigationville?  It’s complicated, but Jane appears to be making two primary arguments:

1. Mozenter’s trustee fees are excessive, and
2. Mozenter is mismanaging the trust assets, resulting in less income being distributed to her than she believes she is entitled to.

Let’s take a closer look at the first issue.

Jane claims that Mozenter is collecting trustee fees of $1.7 million per year. If that number is accurate, is her complaint valid? At first glance, the fee seems excessive.  How can it possibly cost that much just to distribute income to Jane each year? But the answer isn’t that simple.

We don’t know how much time and effort is involved in managing the trust. Jimmy’s assets may be extremely complex, requiring substantial oversight. Perhaps the trustee must manage multiple businesses, real estate holdings, or investments, and may need to hire a team of accountants and attorneys to do so. Without knowing the full scope of work, it’s difficult to say definitively whether the fee is excessive.

That said, $1.7 million is a significant amount, and Jane is certainly justified in questioning the trustee’s compensation.

So what do trustees typically charge to manage a trust?  Spouses and family members who serve as trustees usually do not charge a trustee fee. That’s one of the benefits of naming a spouse or close relative as trustee, they often take on the role without compensation.

Unrelated third parties, however, typically charge a fee and for good reason. Managing a trust requires time, effort, and expertise. Every hour Mozenter spends administering Jimmy’s trust is time he cannot spend earning income from other professional activities such as advising clients. There’s also risk involved. A trustee has a fiduciary duty to manage the trust assets properly and can be held personally liable for mismanagement. Most people expect to be compensated for both their time and the risk they assume.

Corporate or professional trustees often charge between 0.5% and 1.5% of the trust’s value per year. In this case, Mozenter’s reported annual fee of $1.7 million is roughly 0.6% of the trust’s $275 million in assets, placing it within the standard range for professional trustees.

If Jimmy’s trust authorizes a “reasonable trustee fee”, a common provision, Jane may face an uphill battle. Mozenter’s fee is generally in line with what a corporate trustee would charge. However, if Jane can demonstrate that the fee is not reasonably related to the time and effort he actually spends managing the trust, she may succeed in her claim. If the court agrees, Mozenter could be required to return a portion of his fees to the trust.

The second argument involves Mozenter’s management of the trust.  It appears Mozenter distributed $2 million in income from the trust to Jane. While that would be a generous distribution by most standards, Jane may be accustomed to a lifestyle that requires even more. But whether Jane needs more than $2 million annually is not the legal issue. The key question is whether the trust should be generating more income than it currently is.

Jane’s argument centers on the fact that a $2 million distribution represents less than a 1% return on a $275 million trust. That’s a fair point. But we need to take a closer look to determine whether her argument holds up.

As noted earlier, the income distributed to the spouse must be net income.  That is, income remaining after trust expenses are paid. Mozenter’s $1.7 million trustee fee is one of those expenses and is paid out of trust income. That means the trust must have generated at least $3.7 million in total income, or about 1.35% of its value. On its face, that’s a modest return.  Most people would expect more from such a large pool of assets.

But that’s not the whole story.

Media reports suggest that some of Jimmy’s assets are not income-producing. He reportedly owned things like cars, airplanes, residences, and musical instruments. These types of assets not only fail to generate income but they cost money to maintain. Factor in ongoing expenses and the trustee’s fees and it becomes more understandable why the net income might be relatively low.

So, while a 1.35% return seems underwhelming, it may reflect the nature of the trust’s holdings. If a large portion of the assets are illiquid or non-income-producing, and if the remaining assets are being prudently managed, then a $2 million income distribution could be entirely reasonable.

We can’t know for certain without reviewing the full list of trust assets, but the key takeaway is this: many factors affect the income-generating potential of a trust, and the trustee’s job is to do the best they can with the assets they’ve been given. Sometimes, that still results in a net income that disappoints the beneficiary.

What Could Have Prevented a Trip to Litigationville?

Without knowing all the details of the people and planning behind Jimmy’s trust, we can only speculate about what might have been done differently. But in most estate disputes, and possibly this one, a root cause is a lack of communication.

Did Jane know that Mozenter would serve as co-trustee, manage the assets, and effectively control her income stream? If not, perhaps Jimmy should have told her. Then again, had he shared that detail, he might’ve ended up in Divorceville instead of Litigationville.

That’s the tricky part about critiquing someone else’s estate plan, we weren’t there. We don’t know the family dynamics, the conversations that were had (or avoided), or the reasons behind certain decisions. Maybe Jimmy made the right call by keeping quiet. Or maybe it was a mistake not to inform Jane upfront. We simply can’t know for sure.

That said, in general, unless the conversation is likely to cause more harm than good, it’s better to communicate. Letting the beneficiary spouse know how much or how little control they’ll have over the assets and income can go a long way toward managing expectations. When it comes to trusts, the fewer surprises, the better.

The other issue is: was Mozenter the right choice for the trustee?  Once again, without knowing the individuals involved, we can only speculate. But it’s a fair question: Was Mozenter the right person to serve as trustee?

What if Mozenter viewed his role primarily as an opportunity to maximize trustee fees and cash in on his long-standing relationship with Jimmy? Did the two of them ever have a clear discussion about compensation? Did Jimmy realize the trustee fee might amount to $1.7 million per year and was he okay with that?

On the other hand, was Mozenter the only person who had the experience to know and manage Jimmy’s assets?  Was he the perfect person to be trustee and would anyone else have charged even more in trustee fees to manage the assets in Jimmy’s trust?

We don’t know the answers. Hopefully, Jimmy and Mozenter had a candid conversation about trustee compensation and Jimmy felt that the fees were reasonable and well-earned. If not, that could have been a costly oversight, especially with a trust of this size and complexity.

While trust law typically allows a trustee to take a “reasonable fee,” the only real way to control that fee is for the trust’s creator to ask the hard questions up front and specifically address compensation terms in the trust document.  Again, better communication when implementing plans can lead to less conflict in the end.

What Did We Learn on Our Trip to Litigationville?

No trip is complete without a quick debrief of what we saw and learned. Here are a few key takeaways from the Jimmy Buffett trust dispute:

1. The bigger the estate, the more planning it requires.
   As estates grow, so do the stakes. Estate tax planning becomes more critical and the expectations of beneficiaries tend to rise along with the risk of disappointment and conflict.
2. Marital trusts are a powerful planning tool.
   These trusts offer peace of mind. They help ensure that if one spouse passes away first, the surviving spouse and children are provided for, and the family's hard-earned assets are protected.
3. Communication is usually better, but not always.
   It’s likely that better communication might have reduced the chances of Jimmy’s trust ending up in litigation. Experience tells us that lack of communication is often the root cause of estate disputes. In general, sharing your plans with spouses and beneficiaries is wise. But occasionally, disclosure causes more trouble than it's worth, and silence may actually serve the family better. It depends on the people and the dynamics.
4. A strong advisory team makes all the difference.
   One thing we can say with confidence: having a good team of legal, financial, and tax advisors dramatically reduces the odds of conflict. No plan is perfect and even the best ones can still end in litigation. But, plans crafted by experienced professionals are more likely to be implemented smoothly and more likely to succeed.

Estate planning is like writing a song that you will never get to sing but that your family will hear forever.  To make the best song (estate plan) for your family, plan carefully, communicate wisely and work with a good team.  Regardless of how the litigation turns out, Jimmy left his wife a significant, reliable source of income for her life and protected the assets for his children. Maybe his plan isn't the best song he ever wrote but it still sounds pretty good.