Keeping the Inheritance Plan Fair Amid Land Prices Surge

By: Myron Friesen

On several occasions, my wife and I have thought we kind of knew what we wanted for our plan, but land prices keep going up and it seems like the target keeps moving. We have three kids and 900 acres. One of our children is farming with us. We still want to keep this farm together, but how do we keep current and fair with inflation that seems crazy?

SOLUTIONS:

Let’s start by being honest. There’s not one exact, perfect, always-fair way to figure this out. Here are some questions to begin the process:

1. Do you want all three children to own the land?

If no, then how much cash and other nonfarm assets should others get, and where will it come from?
If yes, will there be any restrictions on the land? If so, how will rent and buyout prices be determined?