Is it time to split up the farm?

Is it time to split up the farm?

Split the operation in half, but attempt to maintain a relationship so that if you want to farm together, you can. Also, develop options to treat current and future generations fairly while giving your son an opportunity to keep the whole farm together in the future. Split the operation down the middle and do business separately.

What’s the best way to split up an estate?

Total up the value of your estate and then divide it in a roughly equal way. If your estate consists mostly of cash, then it’s easy. However, most of your wealth may be tied up in land, homes, and vehicles. You have some options: Divide up assets based on their value. For example, you might have two children.

Do you have to keep your farm for estate planning?

As you consider estate planning, you might feel the desire to keep your land in the family without unnecessarily tying your heirs’ hands. Some clients are very clear: “All my farm ground must be given to my farming son, and he can never sell it!” Another family is just as clear: “Let the kids split it equally, I don’t care how.”

Is it easy to pass on farmland to heirs?

Passing on the farmland fairly is not as easy as giving your heirs cash, stocks or bonds. As you consider estate planning, you might feel the desire to keep your land in the family without unnecessarily tying your heirs’ hands.

Is it unfair to split a family farm?

Further, if one of your heirs has already invested significant time or effort in working the property, he or she may believe that selling the farm just to simplify the process of dividing it is ultimately unfair. If you divide the farm equally without liquidating it, more questions arise, especially if you have multiple heirs.

What’s the best way to split a farm?

The largest decision will be whether to liquidate the farm and divide the proceeds among your heirs, or to transfer the working farm, including the ownership, management and labor components of the enterprise. The former does raise its own estate-planning issues, but is comparatively simple.

Who is responsible for dividing the family farm?

You should certainly involve them in your plans, but the ultimate responsibility is yours. The solution that is best for you will depend on the variables at play, including the number of heirs you wish to include and the nature of the property you wish to pass down.

How to keep your farm in the family?

Here are some practical ideas for passing on your land As you consider estate planning, you might feel the desire to keep your land in the family without unnecessarily tying your heirs’ hands. Some clients are very clear: “All my farm ground must be given to my farming son, and he can never sell it!”

Who is the owner of farm financial strategies?

Myron Friesen is co-owner of Farm Financial Strategies in Osage, Iowa. During the past 15 years, he has worked exclusively with farm families across the Midwest to develop farm transition strategies. Friesen grew up on a Mountain Lake, Minnesota farm.

How big is the Simplot farm in Idaho?

Simplot’s heirs oversee a $2.5 billion agricultural powerhouse that has interests in farming, ranching and cattle production, food processing, phosphate mining, fertilizer manufacturing, and other endeavors. Of the company’s 443,000 acres, 82,500 of them are farmland, primarily in western Idaho and eastern Washington.

Who is Bennett Van Rensburg of Agri land?

Bennett van Rensburg Principal of Agri-land has been an appraiser for more than 20 years. He served on the Uniondale Valuation Board and is in the property business since 1980 with more than 40 years experience in marketing farms. He also gained experience in various Agricultural Departments as Extension Officer for 15 years.

Split the operation in half, but attempt to maintain a relationship so that if you want to farm together, you can. Also, develop options to treat current and future generations fairly while giving your son an opportunity to keep the whole farm together in the future. Split the operation down the middle and do business separately.

Myron Friesen is co-owner of Farm Financial Strategies in Osage, Iowa. During the past 15 years, he has worked exclusively with farm families across the Midwest to develop farm transition strategies. Friesen grew up on a Mountain Lake, Minnesota farm.

When did my family split up their property?

We all get along and are not squabbling over the property. However, we all realize that joint interest is not in our best interests and would like to legally split up the property. We had the land appraised in 1991 and the results showed a wide range of values per acre.

Can a land deed be split between two people?

If a person ends up receiving less valuable land overall, then perhaps he or she should receive more actual acres to compensate. If the existing tracts lend themselves to this type of land division, it will be relatively easy to create deeds to each other to accomplish your land split.