Activity #3: Valuing the Legacy (Balance Sheet)

A Family Legacy: Succession Planning for Ranch and Farm Owners
Activity #3: Valuing the Legacy
(Balance Sheet)
Please try to categorize the things that you own (assets) and how much you owe (liabilities). If you haven’t
prepared a balance sheet before, or had someone do it for you, this may be an approximation. The purpose is for
you to begin to appreciate the magnitude of your estate, and what it’s composed of. If you prefer, you can do
separate sheets for major components of your family business, or you can separate business and personal. See our
website for an Excel spreadsheet that will allow you to do a more complete balance sheet.
Things you own: Assets
Current (≤ 1 year life, e.g., cash, bank
Amounts you owe: Liabilities
Current (due in ≤ 1 year, e.g., notes and accounts
accounts, product inventory, supplies, accounts
and short-term notes receivable, etc.)
payable, operating loans, credit card balances, accrued
interest and taxes, optional: current year’s principal on
non-current debt)
Total Current Assets
Non-Current (≥ 1 year life, e.g., durable
Total Current Liabilities
Non-Current (due in ≥ 1 year, e.g., term loans on
capital like machinery, equipment, breeding
livestock, capitalized perennials, buildings, land,
durable capital, mortgages, notes and contracts on real
estate, etc.)
Total Non-Current Assets
Total Assets
Total Non-Current Liabilities
Total Liabilities
Net Worth (Total Assets – Total Liabilities)
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