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  1. #1
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    case 1835B

    Default Inheriting Family farm at a cost of $450k


    There's lots of real world advice to be found at TBN so that's why I'm posting my question here.

    My mother & her two brothers are trying to sort out their inheritance and things are looking bleak for my one uncle.
    Here's the will as far as I understand it:

    My mother & her older brother are entitled to:
    40 acres of farmland each + $200,000 each worth of financial investments.

    The younger brother gets 150 acres of farmland which includes the house & barns. With him being responsible for paying my mom & other uncle the difference between the appraised 150 acre value & their total inheritence value.

    All agree that nobody is ever going to sell their part to fulfill my Grandfathers wishes.

    When the will was last revised 22 years back farm land value was around $1000/acre and not the $20,000 it is today.

    So to get to the punchline, the youngest uncle is on the hook for paying the other two a total of $450,000 since his 150 acres is so valuable.
    So he's about 5 years from retirement & has been dealt a whopping bill to pay his brother & sister for a home he was raised in & will never sell but rather would be leaving it to his nephews & niece since he doesn't have any children of his own.
    In the long run I'd be one of them to inherit this but I can't believe how unfair this whole situation is for him.
    My mother is loving & reasonable but feels she has her hands tied by the letter of the law(will). I try & remind her that they need to go by their parents original intention which didn't include hanging their youngest child with a huge bill.
    Anyone else go thru something like this & how did you handle it?

    By the way the entire farm brings in $40k annual income under its current land lease agreement.

  2. #2
    Platinum Member rmorey's Avatar
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    Eastern Ontario
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    Kioti DK40SE HST Cab, Mechron 2200

    Default Re: Inheriting Family farm at a cost of $450k

    Why does he need to pay the other two anything. They got 40 acres each and $200k and he got the farm. Done.
    Rick

  3. #3
    New Member
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    case 1835B

    Default Re: Inheriting Family farm at a cost of $450k

    Quote Originally Posted by rmorey View Post
    Why does he need to pay the other two anything. They got 40 acres each and $200k and he got the farm. Done.
    That's what I'm saying-
    I'm asking my mom if she could just be happy with the $200k investments part & forget hindering her younger brother with this additional burden. Afterall he's been the one out of the 3 to stay there in SW Michigan & take care of everything over the past 27 years that we've lived here in Florida & the other Uncle in Tennessee. So let's show a little appreciation shall we? Besides they'll still expect uncle Mike to maintain & orchestrate their 40 acre land leases with the tenant farmer anyway since he's there & they are not.
    One of my customers suggested they simply set the entire farm up as an LLC & they are as shareholders.

  4. #4
    Platinum Member
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    Sno WA
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    JD 950

    Default Re: Inheriting Family farm at a cost of $450k

    Sell everything

  5. #5
    Platinum Member rmorey's Avatar
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    Eastern Ontario
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    Kioti DK40SE HST Cab, Mechron 2200

    Default Re: Inheriting Family farm at a cost of $450k

    My next thought exactly. Then they each hold equivalent shares representing their individual ownership. Split income, etc. Sounds like the best solution for all.
    Rick

  6. #6
    Platinum Member
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    Default Re: Inheriting Family farm at a cost of $450k

    Your looking at probably $4 million. Anything other than a liquidation is too complicated, likely to leave some with bad feeling, debt or house-poor.

  7. #7
    Bronze Member
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    NW Ohio
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    NH T2310

    Default Re: Inheriting Family farm at a cost of $450k

    And the tax man will be right there with his hand out......
    New Holland T2310, NH 250TL loader, United 672HD box blade, Construction Attachments 42HD forks, KK II 6' tiller

  8. #8
    Elite Member Baby Grand's Avatar
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    Windsor, CT.
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    Kubotas: L3240GST B2320HST B5100D & G5200H

    Default Re: Inheriting Family farm at a cost of $450k

    If your uncle gave each of the other 2 relatives 12 acres each ($240000 at $20000/acre), he'd have 126 acres instead of 150 and owe nothing.
    Doesn't sound too bad to me.
    That's the problem with trouble.
    It always starts out as such fun."
    - Randall Brown

  9. #9
    Super Star Member murphy1244's Avatar
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    Ohio
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    Kioti DK-40, MF-135, Ventrac 4500Y

    Default Re: Inheriting Family farm at a cost of $450k

    Quote Originally Posted by Baby Grand View Post
    If your uncle gave each of the other 2 relatives 12 acres each ($240000 at $20000/acre), he'd have 126 acres instead of 150 and owe nothing.
    Doesn't sound too bad to me.
    now your talking!
    Murph ------------

  10. #10
    Gold Member JBourquin's Avatar
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    New York
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    MF 1529L

    Default Re: Inheriting Family farm at a cost of $450k

    $20,000 an acre? I'd say it's time to sell it all, move elsewhere and retire the whole **** family!! Stuff around here still sells for around $1,000 an acre..

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