When it comes time to pass down the family farm to the next generation, there is always the question of who gets what. Should all the siblings inherit equal parts, or does precedence go to the eldest?
The answer to this question is, unfortunately, not simple. There are several factors to look at when determining who the farm should go to, whether in whole or shares.
Fair vs. Equal
Before we delve into what factors should be considered in inheritance, let us look at the concept of fair vs. equal on the family farm.
Fair means that everyone is given what they deserve, which is something we will be discussing in the following paragraphs. Equal simply means leaving each sibling the same share in the farm, regardless of who deserves what.
When planning your farm inheritance, you want to strive to be fair, even if someone gets a little upset. That is what is best for both the farm and your family.
Who Is Interested
The most important thing to consider is who shows interest in taking over the family farm. There may be one child who does not want the farm, as sad as this may be. On the opposite side, there may be one child who has shown a stronger interest than their siblings.
Who Is Most Invested
Another consideration is which children are most invested in the farm. If there are two children who hope to inherit the farm, for example, but one has moved away while the other has stayed to help tend things into adulthood, the second has obviously invested more in the business. As such, they will expect the farm is handed down to them, or that they inherit a larger share in the very least.
Birthright
Sometimes the decision will be a difficult one, but it is best for one person to inherit a larger share of your legacy. This will be the person who will oversee the business side of things and settle disputes. If everyone has an equal share, there may be problems which arise that nobody can mediate.
If it comes down to two or more individuals who deserve the farm equally, the largest share should be given according to birthright.
For more information on how to keep the farm in your family, as well as other useful farming information contact us today.
