Professional consulting foresters profess the importance of periodically taking a forest inventory. This step is fundamental to sound stewardship of our forestland. It provides an accounting of our timber and other natural assets. It identifies work completed, and projects yet unfinished. It notes the strengths and weaknesses of our particular tree farm or forestland. It forms a basis for future management decisions.
In the succession planning process, there is a similar step for forestland owners. It is often referred to as an “Heir Assessment” but it can be likened to an “inventory” of sorts. It is an assessment of the abilities and personal situations of the potential heirs. For most forestland owners, the personal, family, and financial issues impacting their children (or other heirs) are difficult to understand and predict. However, these issues have a direct impact on how successful an inter-generational transition will be. Keep in mind, all families have issues and events that challenge (or will challenge) the relationships between parents and children, between siblings, or between the spouses of children. The purpose of an Heir Assessment is not to necessarily prevent these issues from occurring, but rather to take an honest, objective look at the strengths and weaknesses of your family so that you can plan for these challenges.
Similar to a forest inventory, a forestland owner should not only assess the current family situation, but should attempt to identify issues or characteristics that may present challenges to a successful transition in the future. Here is a partial list of questions/ issues that can be used to evaluate your heirs, and their ability to continue your legacy for years to come:
Passion for Forestland:
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Do your heirs share your passion for the forestland?
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Do your heirs have a deep level of respect for wild places and wild things, or do they value the comforts of modern society more?
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Do the heirs see the family forestland as an heirloom, or just another financial asset?
Involvement in the Tree Farm/ Forestland
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Do the heirs understand the management issues involved in owning a woodland?
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Do they understand your management strategies?
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Are your heirs capable, and willing to do the manual labor required to manage the property?
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Are they involved today?
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Do they enjoy it?
Personal Issues:
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Do your heirs get along with each other?
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Can they work together in a business relationship?
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Are the various marriages likely to last?
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Are there health issues?
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Are there any psychological, emotional, or chemical dependency issues?
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Where do they live? Do the lifestyles allow for forestland involvement?
Financial Issues:
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Are the heirs on a solid financial footing?
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Do they understand money?
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Are there future financial pressures that may arise (i.e. divorce, bankruptcy, healthcare, nursing home expenses)?
The key is to be as honest as you can be in evaluating all of your heirs (children, spouses,
grandchildren, etc.). Anticipating what obstacles may develop is the first step to designing a
plan that is good for the family, and good for the forestland. The goal is to create a plan that
minimizes family dissention and conflict, while preserving the family forest.
( Go to next article "Should You Consider A Trust?" )
