Succession Planning

Kirsty Kupa is a principal at Fitzherbert Rowe, a law firm with a large rural client base and offices across Manawatū, Tararua and Te Matau-a-Māui Hawke’s Bay. Kirsty grew up in Taranaki, and now lives in the small village of Ōtāne, just up the road from Waipukurau in Central Hawke’s Bay. In this column, Kirsty shares what she’s learnt over the years working closely with rural clients around the country on succession planning.

Succession planning is important. It ensures the smooth transfer of farm ownership, assets, and management across generations. It involves open communication and professional guidance to balance business viability, family relationships, and retirement needs while preserving the farm’s legacy. With the right support and early conversations, it doesn’t have to be overwhelming.

Communication is key. Family history and generational differences across all aspects of farming – including plans for future growth – can strongly influence how each family member approaches succession planning. Recognising these factors can support better understanding and communication. Early, honest conversations – even general ones – help bring expectations to the surface. Constructive and meaningful conversations are hugely important, particularly for those families who haven’t yet started to talk about succession.

One size doesn’t fit all. Every family is different. Some have talked about succession for years, others haven’t at all. Skilled professionals can make a huge difference, especially when emotions run high. This isn’t just a business decision – it’s deeply personal.

Involve professionals early. Once those initial chats have started, it’s time to bring in your team – lawyers, accountants, bankers and succession planning specialists. We handle the tricky technical stuff and help navigate family dynamics and expectations. Our job is to make sure what you want to happen can actually happen – and that everyone understands the plan. The aim is for the family to set the vision for the future, with the professionals working together to create the roadmap to get there.

Structure matters. A clear, well structured plan helps avoid future confusion or conflict. It also  supports the right balance between ownership, governance, management and day-to-day operations – whether that’s an all-in and all-out model, or a more gradual transition between generations.

Don’t wait. It’s never too early to start thinking about succession. Even if your kids are still young, putting structures in place now can make future conversations easier. Early planning also helps ease pressure on the next generation. Transitioning into or out of farm ownership can feel both like a privilege and a daunting challenge. What does the
next generation need to succeed – and what do those retiring need to support themselves and enjoy life beyond active farming?

Trusts are not set-and-forget. The trust landscape has changed significantly in recent years, especially with the introduction of the Trusts Act 2019. Trustees have serious obligations, and it’s vital they understand what the trust deed allows – and what it doesn’t. As a professional trustee, I’ve seen how difficult it can be when a settlor passes away without clearly documented wishes. Suddenly, you’re juggling family expectations, valuable land, and legal constraints – and it gets tricky fast. If your farming structure involves a trust, check that the trust deed is still fit for purpose and that everyone understands their roles. It’s a complex area and, unfortunately, it’s becoming more litigious.

Be realistic. Sometimes the ideal plan just isn’t feasible – timing, finances, and long-term viability of the farm all come into play. The goal is to avoid putting anyone under undue pressure. With good planning over time, you can find a path that works for everyone.

Let go of assumptions. The right solution is the solution that works for the family. Your advisors are there to help – and to offer options and solutions you might not have thought of, but that could lead to the outcome you’re hoping for. An open mind from everyone is the best starting point. Also, parents often think their children know the plan – but sometimes they don’t. When intentions aren’t shared, misunderstandings grow and relationships suffer. A lack of communication can put a strain on family relationships.

My advice? Start talking. Start the conversation early. Be open, transparent, and bring in the right people. Succession planning is complex – but it doesn’t have to be overwhelming. In the end, your strongest legacy is the relationships you preserve.