Neighbors Place

[KenB]

Neighbor died last week, kids have already started hauling all the cattle to the sale barn.
It amazes me to see sixty plus years of work on a beautiful place sold off as fast they can.

CB, I know that is hard to watch, especially if the feller was your buddy.

Sad thing to me is all the folks that come on here trying to figure out how they can get started with cattle. As we read their questions and their stories, we all know that about the only way to do it on anything bigger than a hobby scale is to inherit it or spend a lot of money that you've made somewhere else. Those folks are trying to figure out how the heck to get started and the ones you are talking about are trying to figure out how to get out of it. I guess that's the way of life. One man's dream is another man's nightmare.

Another sad fact is that oftentimes, the idiotic inheritence tax rules in this country drive people to these decisions. Especially if a person inherits a lot of capital assets with very little cash.

If one of the children would have wanted to take over the farm they should have been there years ago, there are a lot of ways to avoid taxes with a bit of for thought and planning

 

[Nesikep]

Another sad fact is that oftentimes, the idiotic inheritence tax rules in this country drive people to these decisions. Especially if a person inherits a lot of capital assets with very little cash

If one of the children would have wanted to take over the farm they should have been there years ago, there are a lot of ways to avoid taxes with a bit of for thought and planning

That's part of the reason I'm going back now... over the course of 5 years, some assets (or liabilities in the case of cows) will be transferred over to me..

 

[1982vett]

If one of the children would have wanted to take over the farm they should have been there years ago, there are a lot of ways to avoid taxes with a bit of for thought and planning.

That doesn't necessarily solve all problems amongst siblings and in many cases causes more. Most parents can't see past treating all their children equally which means everyone shares and shares alike. Even if pre-planning for the fateful event is done, he still ends up having to find a way to pay off his siblings. While he has worked, and scrimped and busted his butt to make a go of the farm, about all he has accomplished is earning his brothers and sisters that couldn't wait to fly the coup a grand inheritance and a large mortgage for himself.

I realize the big corporate type family farms usually have insurance policies and might even issue stock to their owners. But in the end, even if his share becomes larger thru stock grants from Mom and Dad, he is still earning an inheritance for his siblings.

Sounds a bit greedy, but that is what happens. The farmer/rancher does the work, foots the bill and takes whatever everyone else lets him keep.

 

[Jogeephus]

If one of the children would have wanted to take over the farm they should have been there years ago, there are a lot of ways to avoid taxes with a bit of for thought and planning

I agree but you are forgetting the most important element which is TRUST. You got to be able to trust your children to do the right thing and not toss you in an old folks home when you give up the power. Many people, including myself, have a hard time doing this.

 

[KenB]

If one of the children would have wanted to take over the farm they should have been there years ago, there are a lot of ways to avoid taxes with a bit of for thought and planning

I agree but you are forgetting the most important element which is TRUST. You got to be able to trust your children to do the right thing and not toss you in an old folks home when you give up the power. Many people, including myself, have a hard time doing this.

I am not forgetting about that, its why I posted this...


Re: Neighbors Place
by KenB on Sun Dec 21, 2008 10:46 am

I hope and pray that I will know when My time is about up.
I would like to either try to sell to someone that will carry on what I have done or at least be able to liquidate most of my assets myself.
I would put the money in some kind of trust. I guess I want to be in control even after I am gone.

 

[Jogeephus]

If one of the children would have wanted to take over the farm they should have been there years ago, there are a lot of ways to avoid taxes with a bit of for thought and planning

I agree but you are forgetting the most important element which is TRUST. You got to be able to trust your children to do the right thing and not toss you in an old folks home when you give up the power. Many people, including myself, have a hard time doing this.

I am not forgetting about that, its why I posted this...


Re: Neighbors Place
by KenB on Sun Dec 21, 2008 10:46 am

I hope and pray that I will know when My time is about up.
I would like to either try to sell to someone that will carry on what I have done or at least be able to liquidate most of my assets myself.
I would put the money in some kind of trust. I guess I want to be in control even after I am gone.

You missed my point.

 

[Wewild]

Re: Neighbors Place
by KenB on Sun Dec 21, 2008 10:46 am

I hope and pray that I will know when My time is about up.
I would like to either try to sell to someone that will carry on what I have done or at least be able to liquidate most of my assets myself.
I would put the money in some kind of trust. I guess I want to be in control even after I am gone.

Good post.

Having seen the results of generations getting it handed down to them, I want generations down the road to get a piece of what my grandfather accomplished plus what my mother and dad accomplished and what Susan and I have as well. We have been buried here in this county since 1844.
Seen wealth fly away too quick in the hands of someone who didn't earn it.

 

[Wewild]

You got to be able to trust your children to do the right thing and not toss you in an old folks home when you give up the power. Many people, including myself, have a hard time doing this.

That is a tuff subject. It is hard. I have decided that no one can piss away their lines portion. It might pass to their kids who might need it under those circumstances. Or fall back into the general fund if none make it out of the downward spiral.

 

[Angus Cowman]

You got to be able to trust your children to do the right thing and not toss you in an old folks home when you give up the power. Many people, including myself, have a hard time doing this.

That is a tuff subject. It is hard. I have decided that no one can be nice away their lines portion. It might pass to their kids who might need it under those circumstances. Or fall back into the general fund if none make it out of the downward spiral.

I have purchased all of my parents farm except for 80 acres over the last 10yrs they still use most of it and I lease the rest out to a neighbor because I live about 60 miles away now and it is too much to take care of with what I have down here and when mom and dad decide they want to sell the rest I will buy it also, I am not the only kid who wants it but I am the only one willing to pay for it the other 2 that want it thinks since they are the oldest that they are entitled.

Was a real sore subjuect when they found out I bought it, but dad had offered it to all of us kids before I bought it , I was the only one that was even interested.
I think they just figured they would get it given to them ,But they are also the ones who talk about what they do for Mom and dad, but the only time they come around is when they need something

 

[hillrancher]

This is a very interesting subject as it is a problem that I am toiling with as of now.
I watched this with my neighbor a few years back and it has made me not speak to his son or even treat as if I ever knew him. He sold every thing in the three days before the funeral and bragged about how quick he got rid of it. Left his mother in a home and never came back to see her.
I have one son which lives on one of the farms, but does not give a tinkers dam about any part of farming. I am getting old enough to be thinking about what I should do when I start peeing down my legs.
The decision as of now is never quit and who cares after I am dead. I know this is not the correct answer.

 

[bigbull338]

heres the bottomline to should the farm be sold or kept.an thats those of us love the farm an spend our lives farming.an we will keep doing it till we are dead.an hope that the kids love it as much as we do.an that they will run till they die an their kids take over.i dont have kids.so im depending on my neices an nephews to keep the farm complete.an never sale it for no amount of money.ive seen to meny guys sale the cows an die 6 months later.an i dont want to die like that.

 

[houstoncutter]

A few years back i missed a great oppurtunity to by a great set of cows. We had a Longhorn breeder that if i said his name CB u would know it... Anyhow he also had a herd of GelpviehLonghorns crosses.. He didnnt feed those cows nuthin.. I know cause I drove past em 5 days a week for two years and those cows didnt get nuthin. but they were always in good shape and raised nice calves... The gentleman passed away while I was fishing in Canada, and those cows sold at the sale barn less than a week after the fella died.... I woulda bought everyone for top dollar , but they got sold by the pound.... Makes me sick just to think about it