Cambridge, southwestern Nebraska | Your on the right track. Giving land to non farming children causes the farm to lose equity. And, at some point that will cause the farming heir to buy back part of the farm that you already bought once.
Better way is give life insurance or other cash to the non farming heirs in the amounts you want. Or have the land of a non farming heir transfer back to the farm when the that heir dies. That would give them income for life off of the farm but eventually the farm would get it back without buying it. The rent would just be a payment for using it. Non farm heir's children would not have anything other than what their parents gave them. But this is a better long term arrangement for the farm.
Another thing that you could do if you wanted to do this is IF the farming heir decides to quit, the off farm heirs receive ownership of their land and can do anything they want with it.
This last suggestions could cause troubles in a family so I don't exactly agree it is the best way but it might be an option. |
How to wrap my head around generational transitions/equity?
