The pros of proactive land transfer
Focus on Farm Transition videos provide strategies and advice to help you navigate the key challenges and questions that arise during the farm transition journey.
Annessa Good, FCC Ag Transition Specialist, shares four proactive options for transferring land while alive that keeps business structure and taxes in mind, while maintaining family relationships.
- Land is key to the operation and people are living longer – next generation needs clarity sooner than later
- Consider options that give direction for future generation and security for senior generation
- Check out FCC Farmland Values Report as a measurement tool
- Work with your technical experts to explore these and other options:
- Life estate and remainderman interest: transfer land while alive and still have some control over that gifted equity.
- Repurchase option: utilized when transferring land at less than fair market value.
- Shareholders loan: selling a personally owned quarter to your farm company and then using that shareholder loan as a potential source of tax-free retirement income and an off-farm asset for estate planning.
- Gifting the equity through joint tenancy.
Watch the next episode
Patti Durand shares strategies on how to have that stressful conversation you might be avoiding that benefits you, your relationships and the farm business.