“10% of Farmland Expected to be Transferred by 2019.” This is the title of an article on the Wisconsin Ag Connection website that points out the overall advanced age of U.S. farmers. Approximately a third reached the age of 65 in 2014. By 2019 farmland owners are projected to transfer 93 million acres, mostly though trusts, gifts and wills to their children.
The question, “who inherits the farmland” is more about the relationship dynamics between the siblings destined to inherit the farm that it is about estate planning and wills.
For example, in a family with multiple siblings a typical will leaves the assets equally to all the children, but is this really fair? A farm operator wishing to keep the farm in the family would be fortunate to have one child willing to take over. To prevent a possible family feud over money and effort; fair treatment does not necessarily mean equal treatment.
Planning ahead leads to satisfactory solutions for all the family members involved. For example:
- The child managing the farm is paid a reasonable manager’s salary with the remaining profits split between all the siblings
- Major decisions are made by all the siblings and decisions regarding daily operations are made by the managing sibling
- The child interested in managing the farm can buy out the other siblings for cash or can pay rent to them on a monthly or annual basis
We are experts in estate and legacy planning for farm owners. Contact us with your questions about planning to keep your farm in the family.
