Most families become divided after receiving an inheritance. Stringent measures need to be put in place when dividing assets to avoid unnecessary conflicts that threaten the very existence of a family bond among siblings. Dividing a family farm that has been owned by your family for generations can easily get complicated unless a strategic plan is enrolled. Siblings have a tendency of turning against each other after failing to get their way during the division of assets. Emotions, greed, and thirst for power among family members are enough to trigger ugly disagreements that can have a negative impact on family relationships.
3 Tips on dividing the family farm
Plan in advance.
To avoid complications during family farming enterprises division, it’s imperative to have a thorough succession plan preferably in writing for your heirs. A well-detailed will should be enough to communicate your desires on how you want your multi-generational family farm to be divided among your heirs. Planning is the best way of avoiding disputes on how to divide the family enterprise after your death. For effectiveness, it’s important to involve your dependents in your plans. Keeping them informed will ensure that each member gets contented with their shares without any of them acting as an impartial judge.
Designate a trustworthy trustee.
Appointing someone who has earned your family’s trust and respect can be the best decision you can make when you’re alive. The person you designate as your trustee should be able to play the role of an advisor, mediator and friend to your heirs without discrimination. Your designated trustee will assist your family in all financial aspects, facilitate family meetings and mediate peace among conflicting members. He/she will also be in charge of preparing all the required legal paperwork and expedite the entire succession process. An ideal trustee should have adequate experience in wealth management, succession planning, taxation and superannuation among others.
Pay attention to financial implications.
Consider focusing on achieving a good financial outcome strategy for the sake of your family. Focus your attention on achieving a tremendous tax position through capital gains, payable tax, stamp duty concessions, superannuation, and farm management deposits. An ideal financial advisor should be vastly experienced in family property succession, taxation, estate planning, business planning, and superannuation for a hassle-free process.
With the right strategies, family property division can be achieved without triggering relationships breakdowns that have existed for generations. Make the right decisions when you are alive, and your family will never have to jeopardize their strong relationships due to succession.