What is Your Word Worth in Estate Planning

By: Myron Friesen

My parents, especially my dad, always tell me that their plan will “take care of me,” but I have no idea what they mean by that. Unfortunately, in the past I have had other people say, “Trust me,” and then they did not keep their word and it cost me. The stakes are high and I think it would be prudent for me to see the business plan. I want to believe my parents, but it’s difficult when I have no proof. – Submitted by email from R.W.

In estate planning we spend a lot of time talking about valuing farm assets for both estate tax purposes and transition purposes. There are many questions that can come up when valuing actual assets, but one thing we don’t talk much about is how to value someone’s word. In a best-case scenario, all their words are documented, preferably in a bilateral agreement so one party cannot change without the other party’s permission.