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Galena IL | Over a year ago I posted here looking for ways to get next generation farming. Got some ideas, good responses, and Steve Bohr’s no. Overview, 64 years old married 43 years, 2 son, 1 daughter. Farming with me now. Grain and livestock operation, own 2100A rent 1000.
Goals.....
1) Family is friends when I’m gone ( they all get along good now)
2) allow each the option of farming if they want
3) keep taxes too minimum
What I’ve done so far is move the farm land that I own from a trust to an LLC. Both the wife and I gifted a small percentage to the children so that We each own less than 50% ( that lowers the value for estate taxes).
The rules for the LLC, (it takes 80% of the shares to change a rule)
1) have to be a blood relative to inherit. If something should happen to one of my children their spouse can have income from the property but can not own it . Their children can own it.
2) if one kid wants to do something different they have two options. They can rent their shares to brother or sister for 80% of what U of IL post JoDavieiss county’s rent is. Or they can sell to brother or sister. Terms if they want to sell. 75% reduced value, nothing down,
40 year contract, lowest interest allowed by law.
On the day I dye all my personal property goes to family members who are running the farm. ( indirectly on count of taxes)
The older son who has helped dad the longest gets more shares than the younger one.
Why did I do it this way.
At today value “ I “could not buy a operation the size of mine. If I what my kids and their kids to be able to farm I have to make it affordable. Before you tell me I’m forcing a kid to stay, if one wants out at today’s value they could choose a rent check or a payment of more than $60,000 a year. A little more than the $8,000 total my wife and I inherited..... Dennis
Edited by Angus8335 1/28/2019 14:00
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Update on turning over to next generation
