The Hardest Inheritance Decision

Farm succession planning can be one of the most challenging parts of estate planning, especially when there are both farming and non-farming children involved. For many families, the farm is not just an asset. It is a business, a livelihood, and something that may have been passed down through generations. This can make dividing an estate fairly much more complicated. For example, if four children inherit farmland worth $20 million, it may seem simple to divide it equally, with each child receiving $5 million. However, if two children are actively farming the land and want to keep it within the family, things are not always that straightforward. One option may be for the farming children to pay out the non-farming children’s share. However, that could mean taking on significant debt because the value is tied up in the land, not sitting in available cash. Other arrangements may involve providing income or other benefits to the non-farming children, but these decisions require careful consideration because each family’s circumstances are different. There is also no guarantee that inherited farmland will stay together forever. Once the children inherit the property, they may make their own decisions, including choosing to sell their share of the land. This is why having these conversations early is so important. Non-farming children may naturally prefer to receive cash, while farming children are often carrying the responsibility of running a business, managing liabilities, and maintaining the farm. The goal of succession planning is not just dividing assets, but creating clear expectations before decisions need to be made. By having open discussions while everyone is still together, families can reduce uncertainty and help prevent conflict during an already difficult time. General advice only. Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).

Disclaimer || The information provided in this post is general in nature only and does not constitute personal financial advice. Amy Lehmann is an Authorised Representative(No. 1292710) of AFSL 495401.