Estate and Transition Planning

Some people think estate planning is simply preparing a will or trust. But these documents are only one part of an estate plan. Assets can also pass directly to beneficiaries using transfer on death or payable on death designations.  Failing to coordinate those methods can produce results that end up being problematic.

A recent Ohio case provides a good example. In Estate of Edward M. Coughenour, Jr. (2026-Ohio-3060), the Twelfth District Court of Appeals considered a dispute involving a will, transfer-on-death designations, substantial farm debt, and real estate located in multiple states. The case demonstrates an important lesson for farm families: an estate plan must consider not only who receives each asset, but also how debts will be paid and whether an asset will even become part of the probate estate.

The Estate Plan

Edward Coughenour's estate included real estate in Ohio and a 40% interest in 1,900-acres of farmland in Tennessee. Both the Ohio and Tennessee properties were subject to debt totaling approximately $2.7 million.

Coughenour's will left his Ohio real estate to his friend, Justin, and his 40% interest in the Tennessee property to his daughter, Dara. Justin and Dara were also equal beneficiaries of the remaining assets in the estate. The will directed that Coughenour's debts be paid from his estate.

Coughenour had also signed transfer-on-death affidavits for his Ohio real estate. Those affidavits named Justin as the beneficiary of the Ohio property. As a result, the Ohio real estate transferred directly to Justin when Coughenour died rather than passing through his probate estate.  That distinction became critically important.

Assets with Direct Beneficiaries Avoid Probate

Some assets pass according to a will, but others pass directly to a designated beneficiary. Transfer-on-death property, payable-on-death accounts, life insurance, retirement accounts, and other assets with valid beneficiary designations pass outside the probate estate.  This means that the probate court's authority is generally limited to assets that actually belong to the probate estate. Assets that pass directly to a beneficiary do not become estate assets simply because the decedent had a will or because the estate owes debts.

That was the central issue in the Coughenour case. The court held that the Ohio properties transferred to Justin upon Coughenour's death under the transfer-on-death affidavits. Consequently, those properties were not estate assets and were not available to pay the estate's debts.  The result was that the estate still owed the debt, but the Ohio properties that had also secured that debt had passed outside probate.

The Remaining Estate Assets Had to Pay the Debt

The estate did not have sufficient personal property to pay its debts. Under Ohio law, when estate assets are insufficient, real estate belonging to the estate may have to be sold to pay those obligations.  Because the Ohio properties had transferred directly to Justin and were not part of the probate estate, the Tennessee property was the primary significant estate asset available to satisfy the debt. Justin, acting as executor, sought to sell the Tennessee property for that purpose.

Dara objected and argued that the sale would effectively consume the property she had been given under the will while benefiting Justin. Selling the Tennessee property would help satisfy the debt secured by both the Tennessee and Ohio properties, while Justin retained the Ohio property he had received directly through the transfer-on-death designations.

The court concluded that Justin was following the directions of the will and Ohio law. The will directed that the decedent's debts be paid from the estate, and the Ohio properties were not part of the estate. The court therefore affirmed that the debt should be paid out of the Tennessee land that was to go to Dara and that the court had no authority to require the debt be paid out of the Ohio land that was to go to Justin.

A Will Does Not Control Everything

One of the most important estate planning lessons from this case is that a will or trust does not necessarily control the disposition of every asset a person owns.  In this case, the transfer on death affidavit caused the Ohio property to bypass the will and go directly to Justin.  This is why beneficiary designations and other non-probate transfers must be coordinated with the rest of an estate plan. It is not enough to prepare a will and assume that it determines where all property goes.

For example, a farmer may have:

• Machinery and livestock owned individually and transferred through a will;
• Bank accounts with payable-on-death beneficiaries;
• Life insurance with named beneficiaries;
• Retirement accounts with beneficiary designations;
• Real estate subject to transfer-on-death designations; and
• Property owned by a trust.

Each of those assets may follow different rules at death. An estate plan must consider how all of them work together.

Debt Planning Is Just as Important as Asset Planning

The Coughenour case also illustrates another important point: deciding who receives an asset is only part of the planning process. A good estate plan must also consider what debts exist and how those debts will be paid.

A farm estate can include substantial debt. Land, machinery, livestock, and other assets may be pledged as collateral for loans. If some assets pass directly to beneficiaries outside probate while other assets remain in the estate, the source of payment for debts can become very important.

That appears to have been the practical problem in this case. The Ohio and Tennessee properties secured the same debt, but the Ohio properties passed directly to Justin outside probate. The Tennessee property remained subject to the estate administration and was therefore the significant estate asset available to pay the estate's obligations. 

The court noted that Coughenour knew about the debt when he executed his estate planning documents. It also noted that he could have included provisions in his will to address how the debt would affect the property given to Dara, but he did not do so.  We will never know if Coughenour actually intended for Dara to be responsible for all the debt or if using the transfer-on-death affidavits for the Ohio property was an unintended oversight.  The court was unable to guess as to Coughenour’s intentions so it adheres to the law with caused Dara’s assets to be solely responsible for the entire debt.

Summary

The dispute in this case illustrates how the interaction between a will, transfer-on-death designations, secured debt, and probate administration can produce unexpected consequences.  The key lesson is that estate planning requires coordination. A will should not be drafted in isolation from transfer-on-death designations, beneficiary designations, jointly owned property, trusts, business entities, and outstanding debt.

Just as importantly, farm families should understand that assets with direct beneficiaries generally avoid probate. Because those assets are not part of the probate estate, they are generally not subject to the probate court's authority in the same way as estate assets. That can have significant consequences when the estate must pay debts or when the will attempts to distribute assets differently from an existing beneficiary designation.

A carefully drafted and coordinated estate plan can help ensure that assets pass as intended, debts are addressed appropriately, and family members are less likely to find themselves in costly disputes after a death. As this case demonstrates, the time to identify potential conflicts between estate planning documents and beneficiary designations is before death, not after the family is left asking a probate court to sort out the consequences.

You may read the court's decision in its entirety here.

Highlights from the 2026 Cultivating Connections Conference

The Fourth Annual Cultivating Connections Conference, held last week in Columbus, brought together attorneys, financial advisors, lenders, extension educators, and agricultural advisors for dedicated sessions on farm transition planning. Throughout the multi-day event, professionals across disciplines exchanged strategies, networked, and shared critical insights aimed at preserving family farm legacies.

Here are key highlights and takeaway summaries from this year’s expert presentations:

People & Family Dynamics

• Understanding the Real Farm Structure: David Marrison (OSU Extension) highlighted how a family farm’s formal organization chart rarely tells the full story. His presentation demonstrated that effectively advising farm families often requires peeling back the operational layers to understand the true underlying dynamics and decision-making roles
• Supporting Farm Family Well-Being: Sarah Noggle (OSU Extension) addressed mental health concerns within farm families, providing guidance on impacts of  stress and connecting producers with vital support resources.

Transitions & Estate Management

• Assisting Absentee Landowners: Sandy Kuhn (Farmers National) explained how professional farm managers can bridge operational gaps and facilitate effective transition planning for absentee landowners.
• Utilizing Conservation Easements: Peggy Hall and Ellie Ewing (Ohio State) detailed how agricultural and conservation easements serve as durable but flexible legal tools within comprehensive farm succession plans.

Legal Protection & Tax Optimization

• Shielding Assets Against Divorce: Attorney Morgan Lyles (Stebelton Snider LPA) outlined essential protective provisions to incorporate into business operating agreements and estate plans to safeguard the family farm in domestic disputes.
• Navigating Corporate Asset Transfers: Ryan Conklin and Johnny Cottingim (Wright & Moore Law Co.) addressed the tax hurdles of moving assets out of legacy corporations and strategies to minimize negative tax exposure.
• Post-Death Tax Strategies: Robert Moore (Ohio State) examined key tax planning mechanisms to maximize tax basis step-ups and secure favorable tax treatment following the death of a spouse.

The conference reinforced that successful farm succession requires both technical legal tools and open, cross-professional collaboration.  The best transition plans usually involve multiple advisors. Thank you to all our presenters and attendees for contributing to a productive event!

Cultivating Connections is held each year, alternating annually with odd years hosted in Iowa and even years in Ohio. Be sure to look out for details on next year’s conference and plan to join us in Iowa or online!

We are just weeks away from the Fourth Annual Cultivating Connections Conference, taking place August 3–5, 2026, at The Grand Event Center in Columbus, Ohio. If you haven't registered yet, this is your final reminder to secure your spot, whether you plan to join us in person or tune in virtually.

We all know that a successful farm succession plan requires a lot more than just drafting a new LLC or updating an estate plan. It requires a deep understanding of the dynamics and nuances that run a family operation.  To address these issues, this year’s conference agenda pairs technical legal topics with the critical "soft" issues that are required to design and implement a successful farm transition plan.

This Year's Lineup

Our sessions are designed to give you practical, immediate strategies to help with farm transition planning. Highlights from the agenda include:

• Reverse Mentoring: The Invisible Org Chart
• Identifying and Addressing Mental Health Issues in Farm Families
• Farm Transition from a Farm Manager’s Perspective
• Agricultural and Conservation Easements in Farm Transition Planning
• Incorporating Divorce Protection in Business Entities
• Dealing with Farm Assets Trapped in Corporations
• Managing Tax Basis in Estates
• Reviewing Available Resources for Your Clients
• The State of the Farm Economy
• An Interactive Case Study
• Responsibilities in Assessing Client Capacity

In-Person Perks: Ohio Stadium Tour & Ethics CLE

For those joining us in Columbus, the conference kicks off on Monday, August 3 with two special events:

• Behind-the-Scenes Tour of Ohio Stadium: Complimentary for in-person attendees (guests can be added for $20).
• Hofbräuhaus Ethics CLE & Reception: Earn 1.0 hour of Ethics CLE credit with a focused session on Name, Image, and Likeness (NIL) representation, immediately followed by our welcome reception.

Note for Virtual Attendees: The main educational program on August 4–5 will be fully simulcast, allowing you to participate from your home or office.

Registration Details

Registration fees are as follows:

• In-Person Registration: $375
• Online Registration: $325
• Student Registration: $100 (To access special student pricing, please email Peggy Hall directly at hall.673@osu.edu before registering).

The agenda and registration information are available here: https://go.osu.edu/cultivatingconnections .

We look forward to seeing you in Columbus this August to connect, learn, and strengthen the network of professionals supporting our farm families.

Imagine a farm transition meeting where the son is expected to take over the operation, the father officially owns the assets, but the mother quietly manages the finances, maintains the relationships with lenders and vendors, and often knows more about the farm business than anyone else in the room.  Now imagine trying to develop a successful transition plan without recognizing that reality.  That's the premise behind one of the featured sessions at the 2026 Cultivating Connections Conference: "Reverse Mentoring: The Invisible Org Chart." The session explores a challenge that many farm families face but rarely discuss, the difference between the formal structure of the farm business and the actual flow of knowledge, influence, and decision-making within the family.

Farm transition planning often focuses on business entities, estate planning documents and transfer of ownership. Those topics are critically important, but successful transitions also depend on understanding family dynamics, communication patterns, and the transfer of institutional knowledge. The people who hold the most valuable information are not always the people listed on organizational charts or legal documents. Recognizing and addressing those realities can be the difference between a smooth transition and one that struggles.

This session is just one example of the practical sessions participants will experience at the Fourth Annual Cultivating Connections Conference, presented by The Ohio State University's Agricultural & Resource Law Program, Iowa State University's Center for Agricultural Law and Taxation, and the National Agricultural Law Center.

Why Attend?

Cultivating Connections brings together attorneys, accountants, tax professionals, farm managers, educators, lenders, and others who work with farm families on transition and succession planning. The conference provides an opportunity to learn from leading experts while building relationships with professionals facing similar challenges.

Participants will gain:

• In-depth education on emerging legal and planning issues
• Networking with practitioners, academics, and industry professionals
• Practical tools and strategies that can be applied immediately

In addition to "Reverse Mentoring: The Invisible Org Chart," the conference agenda includes sessions on:

• Identifying and Addressing Mental Health Issues in Farm Families
• Farm Transition from a Farm Manager's Perspective
• Agricultural and Conservation Easements in Farm Transition Planning
• Incorporating Divorce Protection in Business Entities
• Dealing with Farm Assets Trapped in Corporations
• Managing Tax Basis in Estates
• Reviewing Available Resources for Your Clients
• The State of the Farm Economy
• Responsibilities in Assessing Client Capacity
• An Interactive Farm Transition Case Study

Conference Details

Dates: August 3–5, 2026

Location: The Grand Event Center, Columbus, Ohio

Attendance: Participants can attend either in person or virtually.

Registration fees are:

• In-Person: $375
• Online: $325
• Students: $100

Those attending in person on August 3 will have access to several networking and educational opportunities, including:

• A behind-the-scenes tour of Ohio Stadium
• A one-hour Ethics CLE focused on Name, Image, and Likeness (NIL) representation at Hofbräuhaus in Columbus
• A welcome reception with conference speakers and attendees

Register Today

Whether you advise farm families professionally, work in agriculture, or simply want to better understand the challenges and opportunities facing family farm transitions, Cultivating Connections offers valuable education and meaningful connections.

Registration is now open. To learn more and register, visit: https://go.osu.edu/cultivatingconnections

We hope to see you in Columbus this August.