Estate planning can be a difficult task for many particularly those that have a family business that is run by part, but not all, of the members. This task can be even more difficult for farmers and ranchers due to high value that their land often holds combined with the fact that many wish to hand down the estate in its entirety so it can continue to be worked by the family. However, this task can be difficult when multiple children, and other parties, are involved who wish to have unchallenged control or want nothing to do with the operation and only the money that can be had from a sell. In situations such as this, communication is essential since it will help put everyone on the same page and possibly prevent challenges to the plan after the death of the owners. Many of those that challenge an estate in court are more upset about the bomb drop they receive when they see what they actually inherited compared to what they expected. In addition, meetings may allow family members to work out plans in advance where those that want to walk away from the farm can arrange to have their shares bought out with a minimum of friction. In any event, communication is always key in any estate plan since it will ease emotions and give a voice to those that feel slighted while there is still a chance to be heard and influence events.
See Kansas & Missouri Estate Planning Blog, Preserving A Family Farm or Ranch for the Next Generation, Wealth Management, January 20, 2016.
Special thanks to Jim Hillhouse for bringing this article to my attention.
