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NE Oregon | Tiler-
This perspective coming from the wife of the next gen in transitioning the family ranch- but what we did is similar to what your attorney suggested. This model came from our tax accountant who we do trust and who loves helping family farms transition to the next generation.
My in-laws put their land into an LLC, (not as many acres as you) which we in turn, as part owners in the S-Corp (all cattle, equipment, operating cash etc) rent from them. It works well to gift shares, do buy-sell agreements, and bring the next generation into the operation in a clean way. Even though it is just my husband and his dad, we went to the trouble to do all this as opposed to a partnership because it offers tax advantages and is really easier to wrap your head around once it is explained well, in our experience.
I do agree that it is important to have a team you trust and can explain things to you. This model has worked really well for us and is flexible to change in terms of how you pass it on to the next generation. Hope that helps! | |
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Transition Questions
