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southern MN | Oh, the dreaded 'undivided shares' deal. Worst thing a parent can do to their family, is leave land as an undivided asset.
4 kids, each own 25% of the farm. one kid wants to farm! one wants the money from his share to buy a town house. one kid doesn't much care. one kid wants $450 an acre rent for their 1/4 share of the farm.
No one owns anything, so they can't sell their 1/4 as it isn't worth much - the whole farm is valuable, a 1/4 share of that has no power or direction so is worth what 1/6 of the value of the whole?
Just a mess, avoid those undivided shares with a long pole! Eventually it gets pushed in front of a judge and a forced land sale so the 2 that want cash now get to cash out of it, the one that doesn't care is no help, and the one that wanted to farm it has a big mortgage on stuff he bought or worked for the first time around, plus 1/4 of a big legal bill.
Paul | |
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family farms where only a couple members farm?
