Tom Kozak wrote:
Jason Traylor wrote:
She told me they are open to about anything I can come up with, but I know I need to meet their vision as well and while I feel they would love for me to buy the place
You say "I feel they would love me to buy the place" also "She told me they are open to about anything". So why not take her words at face value? You feel you need to pay your way, I understand, so do I, but parents are immensely generous (the right ones are). Sometimes as grown children we need to swallow our pride and ask for/accept their generosity.
So ,my advice, offer to "buy" the property for as much $$$ as you can manage, even be that enormously less than it is worth. Ask your parents to sever their home (so that they will not loose it no matter what happens) and promise they will be able to use/influence/enjoy the property for the rest of their (hopefully very long) lives. If you are the good, conscientiousness person I think you are (just from reading this thread) your word is good as gold. And if your parents are the great people it sounds like they are they already know this and will love you even if they say no. (and possibly more, because you had the courage to ask)
At worst they say no. and at best...
Miles Flansburg wrote:Jason, do the laws change at all when the farm becomes a company? I am just wondering if there are different rules that might be an advantage?
George Hayduke wrote:
Miles Flansburg wrote:I think I would try the LLC idea. You are a stockholder who gradually earns more stock based on your work.
If/when your folks pass on, the farm LLC is not lost to lawyers or politicians, it passes on to the surviving stockholders.
The issue is who decides if you've performed adequate work to justify your increased ownership in the LLC? I don't just own a farm, I'll reluctantly admit I've also been a lawyer for 30 years. The problem with the LLC approach is that it takes the cooperation of people who are sophisticated enough to operate as a true corporation and not just have the company operate as their alter ego. I see the LLC approach as being too complicated for most people to properly handle, and the ongoing control of the LLC creates a whole universe of new issues.
My advice is carve off a chunk of land that you can afford under a legally enforceable lease-option arrangement, and religiously pay your monthly rent payments until you can exercise your purchase option. It's a simple solution that will survive the death of your parents and eliminate problems with potentially squabbling siblings who are fighting over the estate.
Mike Cantrell wrote:
Jason Traylor wrote:...while I feel they would love for me to buy the place, I don't foresee even with my wife getting a good job in the future and the farm being extremely profitable ever being able to afford what the place is worth, guessing over a million as oregon coast property is out of this world expensive.
What's the inheritance plan?
Do your folks have wills?
How's their health (does it seem like you've got closer to thirty years with them, or five years?)?
George Hayduke wrote:My advice is carve off a chunk of land that you can afford under a legally enforceable lease-option arrangement, and religiously pay your monthly rent payments until you can exercise your purchase option. It's a simple solution that will survive the death of your parents and eliminate problems with potentially squabbling siblings who are fighting over the estate.
I'm no lawyer, but this makes an awful lot of intuitive sense to me. In fact, I can imagine LOTS of benefits to doing all the surveying, deeding, easement decisions, and the rest, to split the place up now rather than later.
No one's surprised what you're getting.
Your parents deal with the administrative stuff unemotionally, instead of the heirs doing it emotionally.
If the larger section gets caught up in conflict and misunderstanding, the piece you care about is already yours.
That might not make the entire inheritance process go right, but if it separates a safe part for you, then you've got a whole lot more ability to cope with all the rest.
Sounds smart to me!
John Wolfram wrote:Just doing a quick check, it looks like a 55 year old female can get about a million dollars of 30 year term life insurance for a flat rate of $4000 a year. You might be able to structure something where as part of your agreement to work on the farm your mother pays the premiums on the life insurance that lists you and only you as the beneficiary. Upon her death (assuming she outlives your step dad), you get the million which can then be used to buyout your relatives' shares of the farm.