(By Jessica Groskopf, Nebraska Extension Ag Economist)

SCOTTSBLUFF -- In my work with agricultural families, I’m seeing a growing and difficult reality: many farms and ranches today don’t have a successor within the family.

While this absence can simplify parts of estate planning, it often creates deeper, more emotional challenges, especially when legacy and identity are tied to the land.

This article is the fourth in a series supporting farm and ranch owners facing this transition. If you're just joining, I recommend reading the earlier pieces for a valuable background. You can find them at cap.unl.edu.

Once you've answered the critical question: What do I want to happen to my farm or ranch when I die? and you have identified a team of advisors, your next step is establishing a basic estate plan. Regardless of your long-term goals, these four foundational documents are essential:

  • Healthcare Power of Attorney - Names someone to make medical decisions if you're unable to. Without it, loved ones may be blocked from involvement due to privacy laws.
  • Healthcare Directive (also known as a Living Will) - Outlines your medical care preferences in serious situations, ensuring your wishes are known even if you can’t speak for yourself.
  • Power of Attorney - Authorizes someone to handle financial matters — like paying bills or managing leases — if you become incapacitated.

  • Will - Ensures your assets are distributed according to your wishes after death.

Anyone over 19 should have these four documents in place. They’re relatively quick and affordable to set up and can be updated as your plans evolve. The first three protect you while you're alive but unable to act on your own behalf; the will takes effect after death.

Occasionally, someone will say, “I understand having the healthcare and power of attorney documents in place now, but I’ll do the will after I finalize everything else.” I urge you not to delay having a will drawn up. I’ve seen people pass before their full plans came together.

A will acts as a safety net, catching any loose ends, so your intentions still shape what happens to your remaining assets. Without a will in place, the state will decide how your assets are distributed, which can lead to unintended and unfavorable results. Furthermore, I encourage you not to take shortcuts on the will. Often, writing a will yourself or using an online program rather than an attorney licensed in Nebraska will cost much more in legal fees once you have passed than it saves you today.

For many farmers and ranchers without a successor returning to the operation, creating a basic estate plan is only the first step. In the next article, I’ll discuss six common concerns that should be addressed as part of a more comprehensive plan.

###

Nebraska Extension is a Division of the Institute of Agriculture and Natural Resources at the University of Nebraska–Lincoln cooperating with the Counties and the United States Department of Agriculture. Nebraska Extension educational programs abide with the nondiscrimination policies of the University of Nebraska–Lincoln and the United States Department of Agriculture.