Agribusiness Management: Other Risk Management Tools Notes … Other Risk Managem… ·...

Agribusiness Management � AM12 � Other Risk Management Tools

Agribusiness Management: Other Risk Management Tools Notes Page

Date _______________Topic___________________________________

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ain Idea

s, Key Points, Formulas-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐

Estate Planning

Lack of Estate Planning

Considerations in Estate Planning

Transferring Legal Ownership

Gifts



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Wills

Trust

LLC



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Estate Taxes

Retirement and Estate Plans


Agribusiness Management: Other Risk Management Tools AM12.1

Estate Planning Proposal You are a row crop farmer from central Missouri. In addition to owning 3,000 acres of farm land, you reside on the three-generation family farm and have 250 head of cattle. You have a wife and three children under the age of ten.



Estate Planning Proposal You are a middle school science teacher in Northwest Missouri. In the summers, you spend your time mowing hay, baling small square bales, and taking care of your 40 head of cattle in addition to owning 280 acres of hay ground and a pasture that you custom bale for 2/3 of the crop. You and your spouse own your small farmstead and have two grown children.



Estate Planning Proposal You own a two-generation retail greenhouse facility in southwest Missouri. You are divorced with no children and have taken over the business from your mother. Your house is located adjacent to the greenhouse business property. Your siblings and their children enjoy spending time at the greenhouse and helping out during peak seasons.



Risk Management Tools Using the knowledge obtained from previous lessons on the stock market, rental/leasing agreements, and good financial planning, create a 1-minute public service announcement advertising how one of these items serves as a good risk management tool for agriculturalists. Here are some sample PSAs to examine for ideas: No Kid Hungry - http://www.youtube.com/watch?v=2RUYkzJio24 Talent Show – Cyberbullying Prevention - http://www.youtube.com/watch?v=bdQBurXQOeQ Glee Distracted Driving PDA - http://www.youtube.com/watch?v=mnw_7xI5klM 1980s Flintstones Kids seatbelt safety PSA commercial - http://www.youtube.com/watch?v=-XEfCwwAfEU Below is a guideline to follow for creating your PSA.

1. Create a scenario – Characters act out a problem. Be sure to write a script. Actors may use note cards or have cue cards.

2. Goal – Words that appear on the screen, in the background, posted on actors, etc. 3. Reasons – Voiceover explains problem while characters act. 4. Facts – Voiceover shares facts about the main topic.

All small groups/pairs will act out their PSA for the class. At teacher discretion, PSA may be videotaped and shown for class observation.



Risk Management Tool Review Risk Management Tool ___________________________

1. 2. 3. 4. 5.

Risk Management Tool ___________________________

1. 2. 3. 4. 5.


1. 2. 3. 4. 5.




1. 2. 3. 4. 5.


1. 2. 3. 4. 5.


1. 2. 3. 4. 5.



Estate Planning Fairytale Read one of the following fairytales: Cinderella, Hansel & Gretel, Jack and the Bean Stalk, or Peter Pan. Although these stories have a happy ending, things weren’t so rosy throughout the tale. Craft the beginning of the chosen fairytale to include what the parents of these fairytales could have done to most appropriately plan for their children’s future using the risk management tools discussed within this lesson. The beginning of this fairytale should eliminate the hardship these characters had to endure throughout the read fairytale and allowed their “happily ever after” to come much sooner than the end of the book!

Estate Planning Fairytale Scoring Guide

10 points 5 points 0 points WRITING Story beginning is

written like a fairytale as it is easily

understood and in a story format that is interesting to the

reader.

Story beginning sounds somewhat like a fairytale and is in a

story format.

Story beginning lacks the sounds of a

fairytale and should be formatted more like an entertaining

story.

ILLUSTRATION All good fairytales have illustrations.

Two illustrations are included to assist in the development of the story beginning.

One illustration is present with the story

beginning.

No illustrations are present.

SEQUENCE Sequence of story makes sense and flows to assist in

reader’s understanding of

story.

Sequence of story somewhat makes

sense.

Story lacks a sequence that makes sense to the reader.

CONTENT Risk management content is specific and prevalent throughout story to help illustrate how these steps would have made for a better future for the fairytale

characters.

Risk management content is specific but

not as prevalent as needed to back up

points in the fairytale.

Risk management content is lacking.

Total _______ / 40 points



Other Risk Management Tools Alternative Evaluation

1. A plan for financial security during retirement, consideration for heirs, and planning for continuation of a business enterprise

a. Estate planning b. Will c. Gift d. Beneficiary

2. A properly signed, acknowledged, and delivered deed can grant land to be given away

a. Will b. Contract c. Gift d. Deed

3. Legal statement of person’s wishes pertaining to disposal of property after death

a. Will b. Contract c. Gift d. Deed

4. Tax on right of property owner to transfer property at death.

a. Property Tax b. Health Tax c. Estate Tax d. Insurance Tax

5. Legal ownership of property can be transferred by

a. Law of Descent b. Will c. Contract d. All of the above

6. Often considered the most flexible legal business organization.

a. Trust b. LLC c. Will d. Contract

7. A tool in estate planning that can help a person avoid probate and estate taxes.

a. Trust b. LLC c. Will d. Contract



Estate Planning Video What are some of the components of an estate plan? In regard to wills,

• Who needs one?

• Who is involved and what are their roles?

• What gest brought into the estate?

• What is probate?

• How old does someone need to be to do estate planning?

• Identify 3 scenarios discussed in the video that pertain to you now or will in the near future?

• Other than probate, what taxes on the estate can be expected?

• What can be done to prepare for these taxes/fees?

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