06 Feb How to Include Your Ranch, Horses, or Farm in Your Estate Plan

Like any other type of family business, your farm or ranch is your legacy. It represents decades of hard work, and often the work of several generations. But all of that dedication and family history could be lost if you don’t have an estate plan.

A carefully structured estate plan will keep everything running smoothly after you’re gone. Writing a will is a great first step, but it’s not usually enough. Here’s what you need to know to protect your assets so you can preserve your farm or ranch for future generations.

Common Estate Planning Mistakes Farmers & Ranchers Make

Failing to Plan in the First Place 

Complex family dynamics that make it difficult to keep things fair can lead farmers and ranchers to put off estate planning altogether. This not only creates confusion and headaches for your loved ones, it also means that your estate will have to go through probate, and it could be months before your heirs can inherit.  

Using Joint Ownership 

Many farmers think the best way to avoid probate is to jointly own property with a family member. However, this can lead to unexpected financial or legal issues. Plus, if you change your mind, it can be difficult and costly to reverse joint ownership later. 

Ignoring Liquidity 

Farming and ranching assets are illiquid, meaning much of your estate’s value may be tied up in equipment and livestock that are not easily converted into cash. This can cause probate complications, and your loved ones may have to sell off some assets for less than their worth in order to afford the expense. 

How a Trust Can Help You Protect Your Farm or Ranch

So how do you avoid these mistakes? With the right estate planning tools. 

A trust is one of the best options, because it keeps your assets out of probate. This court process of verifying a will can take a long time, and your heirs won’t have access to your assets until the process is complete. This means that managing your farm or ranch is going to be very difficult in the meantime. But if you use a trust instead, you can avoid probate altogether.

It’s also far more difficult to challenge a trust than a will. If you fear that someone may disagree with your choices and will try to make legal trouble after you die, setting up a trust is the best way to make sure your wishes are carried out.

When you fund a trust, you get to decide who will manage its assets and how they will eventually be distributed. You will choose a successor trustee to manage the trust after you’re gone. Whether your trustee is a family member, a business partner, or an institution, their job is to follow your instructions as far as sales, investments, and bequests.

What Type of Trust Do I Need?

Putting your assets in a living trust means you can still access and manage your assets during your lifetime because they remain held in your name. After you pass away, ownership of the assets transfers to the trust, avoiding probate as a result. 

For example, you can use a revocable living trust to protect assets like your farm equipment, your home, and your land. You can also use a Land Trust to transfer ownership of your real estate property to the trustee, who will manage the land according to the instructions left in your trust.

How to Include Your Horses in Your Estate Plan

For example, a pet trust allows you to protect your domesticated animals, such as dogs, cats, birds, and even horses, by ensuring they’re properly taken care of after you’re gone. All you need to do is name a friend or relative as the trustee and leave specific instructions on how they should care for your horses or other animals, including veterinary care, diet, etc. This can even include whether or not your horses should ever be sold or traded. With a pet trust, you can also leave a sum of cash in the trust that is specifically designated for animal care. The trustee is not permitted to use the funds for anything unrelated. Plus, the trustee will also take over if you become incapacitated during your lifetime.  

Let Us Help You Protect Your Family’s Future

Protecting farmland and ranches requires custom-tailored estate planning solutions. At Phelps LaClair, we have over 40 years of experience in helping Arizona families come up with personalized, effective solutions. We’ll help you set up the best trust for your situation and build a solid estate plan that upholds your wishes and keeps your farm or ranch running. 

Your first consultation is always free! Give us a call at 480-892-2488 or send us a message today to schedule an appointment at one of our Phoenix Valley locations.  

Images used under creative commons license – commercial use (2/5/2026). Photo by Dan Meyers on Unsplash