Transition Strategy and Management Plan (TSMP)
Jul 26, 2019 · the transition from current network servicesGSA’s contracts to the Enterprise Infrastructure Solutions (EIS) program This document addresses the program-level, Government-wide approach that GSA follows to manage a successful transition to EIS Success for this program includes completion of transition prior to the expiration of the
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CHAPTeR 1 The Road to Transition Planning Success
transition planning Transition planning requires a significant investment of time, money and emotional resources There are farms that are simply not ready for transition planning It is far better to realize this early It is easier for ownership and management to make adjustments before beginning to work through the process Phase 2: Plan
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THe ROAD TO TRANSITION PlANNINg SUCCeSS
1CHAPTeR 1
The Road to Transition Planning Success
What is the difference between transition planning and estate planning? There is often some confusion between transition planning and estate pla nning. They are distinct planning topics but complement each other. both are important to the overall plan to transition ownership and management to the next generation. estate planning deals specifically with wills and legal documents, tax management strategies, investment and savings, insurance, estate distribution and contingencies A transition plan, where the next generation is going to be farming, must include a complementar y estate plan, but not necessarily vice versa.If the next generation is not interested in farming, then the retiring farming family may only need an
estate plan.What does a transition plan look like?
A transition plan is a living document that helps guide decisions around ownership, leadership, business structure, tax strategies and contingency plans. There are several steps to developing a plan. These steps can take from several months to several years to complete depending on the needs and size of the business. Your transition plan will be revised frequently to align with the changin g environment and familycircumstances. The result will be a clear, detailed plan that will help ensure a successful transition.
2TRANSITION PlANNINg gUIDe FOR AgRIbUSINeSS
What is the transition planning process?
The first step in the transition planning process starts with an initial planning meeting between family
members and others involved in the transition planning process. The next section contains information on how to get this meeting started. The actual transition planning process includes three phases and they ar e completed through specific topics:Phase 1: Readiness Assessment
This phase includes topics that will help you to determine if you are ready to begin transition planning. Transition planning requires a significant investment of time, money and emotional resources. There are far
ms that are simply not ready for transition planning. It is far better to realize this early. It is easier for ownership and management to make adjustments before beginning to work through the process.Phase 2: Plan Development
This phase includes topics that will together form your transition plan.Phase 3: Plan Implementation
Developing a transition plan can follow a standard process but implement ation is specific to each farm family.THe ROAD TO TRANSITION PlANNINg SUCCeSS
3What are the approaches in transition planning?
Next, after your initial planning meeting, select a planning approach th at is right for your business and family needs. There are five planning approach options to choose from, each identifi es specific topics that help build your transition plan:Option 1 - Comprehensive Approach
This approach is the most detailed and all-inclusive approach. Most farm families will take a year or more to work through all the topics.
Option 2 - Condensed Approach
This approach includes the minimum recommended topics. Families followin g this approach could work through the topics in six months or less.Option 3 - Estate Planning Approach
Use this approach when there may not be a next generation wanting to ret urn to the farm or business. For families in this situation, the most impor tant topics to consider are related to the estate plan. Families following this approach could work through the topics in six months or less. Option 4 - Ownership Transfer and Tax Strategy Approach This approach already involves having a good understanding of how you see your family managing through the transition. You will need to understand the different ownership transfer options that are available and their related advantages and dis
advantages. Y ou will also need to apply the most appropriate and advantageous tax strate gy possible. Families following this approach could work through the topics in six mo nths or less.