Why Farm Equipment Needs to Be Part of Your Estate Plan

When most people think about farm estate planning, they immediately think of land. And that makes sense — land is often the most valuable and essential asset a farm owns. But if you stop there, you might be making a critical mistake that puts your entire operation at risk.

Farm machinery and equipment are usually the second most valuable asset on a farmer’s balance sheet. Tractors, combines, planters, and other vital tools can easily add up to hundreds of thousands of dollars — sometimes even much more. Despite their enormous value, these assets are often overlooked in the estate planning process.

Why Ignoring Equipment Is Dangerous

Leaving equipment out of your estate plan can create serious problems:

• Probate Delays: If farm machinery isn't titled or assigned correctly, it can get tied up in the probate process. That means costly court involvement and delays in farm operations.
• Family Fights: When equipment ownership isn't clear, heirs may argue over who gets what. A combine, a favorite tractor, or even everyday tools can spark major disputes. We also need to think about who is responsible for the debt associated with the machinery and equipment.
• Forced Sales: If debt or taxes need to be paid and there's no clear direction on how to handle equipment, valuable machinery could be sold off — even when that wasn't what you intended.

Equipment is essential to the success of the next generation's farming operation. Losing access to it, even temporarily, can cripple the business you've spent your life building.

Planning for Equipment = Protecting the Farm

Good farm estate planning means protecting all the assets that make your farm run — not just the land.

At Wagner Oehler, we help Minnesota farmers create estate plans that address farm machinery and equipment thoughtfully and completely. That includes:

• Documenting ownership clearly
• Reviewing and planning for any liens or loans
• Making smart decisions about how equipment transfers (through trusts, LLCs, or other strategies)
• Protecting both the farm operation and family harmony

If you're serious about keeping your farm in the family, don't leave your equipment out of the conversation.

Ready to create an estate plan that protects everything you've built? Give us a call at (507) 288-5567 to get started.

To learn more about farm succession and estate planning, keep an eye on our Events page located at: https://www.wagnerlegalmn.com/events/.

If you’re ready to start being proactive about your estate plan, contact us to get started.

Want to stay informed? Subscribe to our quarterly newsletter for updates.

#FarmLawyer #EstateTax #FarmingMatters #WagherOehler #FarmEstatePlanning #MinnesotaFarmer