Transferring the Flag

We all know the conversation – we hear it frequently. It goes something like this: “Times are different… kids do not appreciate the same things that my generation does… Technology has changed what we do with our free time… We are all too busy…” The reality is, there is some truth in these observations. Times and families are faced with a very different world. The pace of life does seem quicker these days. Those differences can make it a challenge for a woodland owner to transfer the legacy they have crafted in their woodland or tree farm. Transferring the legal title to the property is actually relatively easy. Transferring the love of the land and the commitment to good stewardship is more difficult.

I would like to borrow a naval analogy to make my point; Naval commanders go through a process of “transferring the flag” from their ship, to another ship in the fleet, when they are unable to continue to lead the fleet. The physical act of actually transferring the flag is relatively simple, and is akin to transferring legal title of a forestland property. The real work lies in the years of preparation that goes into preparing the next generation of commanders. In order to prepare future “commanders”, a navy must do three things:

• Locate potential future leaders who enjoy and appreciate the sea, and want to work on/ around it.

• Provide the basic training and education to give them the tools/ knowledge to succeed.

• Instill a sense of vision and commitment to a larger purpose that will guide these future leaders through challenges and difficulties. No one knows what the future holds. So it is important to give the future leaders a solid philosophical foundation, and a sense of history regarding how and why past leaders did certain things.

Preparing future forestland heirs is a similar process. Without preparation, it will be virtually impossible for a family to retain a complex asset like timberland, in the family, over multiple generations. The issues of operating costs, taxes, forest management, invasive species, TSI activities, government programs, diseases, pests, can create a web of obstacles that can drown the family legacy. However, with planning, there can be a bright future for our family-owned woodlands. Here are a few steps to help families select and prepare future “commanders” for the day the flag is transferred.

• Have Fun

Create opportunities for families (especially the children) to have fun on the property. It is easy to spend all of the available time working and doing projects. These have to be done. However, if the only connection kids (and adults, too) have with a forestland, or farm, is back-breaking work, there may not be much desire to retain the property. If, however, there are pleasant memories, and fun experiences, it will go a long, long way to cementing the love of the land into their lives. Take the time to schedule activities such as:

Obviously, these activities need to be age-appropriate. Care must be taken to make sure that it is a pleasant experience for all. (For example, planning fishing trips when you know the fish are likely to bite, and the weather is tolerable, will help to keep new anglers interested.)

Once the heirs discover the marvels of the natural world contained on your family property, the work projects take a new meaning and pleasure.

• Hold Periodic Family Meetings

After family members discover the “fun” side of woodland ownership, they also need to get their arms around all that goes into good stewardship of these natural assets. Periodic family meetings that inform family members about the work that has been done, the decisions being made, and what may occur in the future, are critical to getting heirs involved on a deeper level. Potential topics could include:

These meetings should be organized and efficient. Ideally, they should not be combined with other family events (if possible) like holidays or parties. They need to be focused on the business and planning side of forestland ownership. With a little planning and preparation, these meetings can be great opportunities to share information with future heirs, and can allow for questions and answers about what is involved in forest management, and why.

• Draft a “Legacy Letter” – some families have drafted ethical wills (a non-legal document that conveys desires, values, philosophies and dreams to future generations. Other families have drafted Letters of Instruction that detail instructions to heirs regarding where things are located, what should be done, why affairs are organized the way they are. A Legacy Letter essentially combines the two into one document. While not legally binding on heirs, the Legacy Letter does convey the family values and philosophies affecting the use of all assets, including the heirloom assets, like the woodland. The specifics of “who, what, where and why” can also be included, if appropriate. Legacy Letters can be very effective “capstone” pieces to a succession plan, acting as an extension of the original vision statement. These are not legal documents. Rather, they provide a background of family values and philosophy that connect the various legal pieces. Heirs can refer to the Legacy Letter at the time of transfer (i.e. death or incapacity), and for many years (or generations) to come. Legacy Letters can take many forms – written letter, video, CD, or DVD. The media is less important however, than the content. The Legacy Letter should be a thorough, but concise, expression of the owner’s hopes and dreams, their passion, and their plans. It should summarize the legacy for future generations.