Hi, I ran across this great website while trying to research my current issue. Hope someone here can help.
My wife just inherited a small Wisconsin farm with her sister after their father passed away. The father’s wishes is it will never be sold (in the family for 160 years). We will abide by this as long as we can. There is little to no value in the buildings and it is currently rented out for the income producing land. Income will not be enough to pay the taxes so we will have to be creative with property tax programs, other sources of farm income, etc to try to make this close to cash neutral to us.
Here is the question: Relationship between the sisters is luke warm and could deteriorate through the rest of the estate process. I am nervous about bills, property tax and insurance payments, etc. I would like to setup a legal agreement (LLC, land trust, partnership or something) that we could set aside monies in an account make payments and collect income so I don’t get stuck paying 100% of the bills. I am also concerned about liability if an accident should occur, best arrangement to easily pass this to children and also easy to sell if necessary. I would also like to manage this farm financially (I know I would have to get agreement from the sister) for the best decision making and also so only one signature is required for legal documents.
Any help would be greatly appreciated as this is all new to me.
Sounds like a good candidate for a trust. Find an attorney that will draft a customized one for your particular situation. The cookie-cutter stuff you find from legalzoom, etc. and the free ones you find on the Internet don’t do the job.
You have a property in disrepair. Your expectation is that the income this property could generate will be break even at best. Your wife’s sister is not likely to assist with the costs of keeping the property if the relationship is strained.
Father’s wishes notwithstanding, if maintaining the property will drain your resources, it is not practical to keep the property. Your wife should offer to sell her interest to her sister.
If she does not want it, then have the executor of the estate put it on the market. Proceeds of sale to be shared equally by the heirs.
A difficult problem. Are their other relatives who might want to buy it? Cousins, aunts, uncles? So it would still be in the family? Could grandchildren get the property eventually through the trust?
Otherwise I agree with Dave T. It’s a tough decision, and many other heirs have had to let property go.
My main issue isn’t with making this farm a profitable investment or cash neutral. I’m willing to have this farm somewhat cashflow negative and let the children use this for recreational purposes. The majority of the acreage is woods.
I just want some type of legal holding company for financial and liability needs. My credit is perfect, my sister-in-law’s I believe is suspect and I don’t want to get stuck begging for half the expenses or worse yet paying all the bills myself. There is some money coming out of the estate that could be put away in some account to pay taxes and upkeep for several years. Also concerned about potential trespassing in abandoned buildings, someone getting hurt and getting sued. Just not sure what is the best route to protect me.
This is the time to see an attorney privately and spell it all out. Before it goes South with the sister-in-law.
Our most difficult problems in life are always with relatives, right? Relatives (some) are those people who you would never, ever otherwise hang out with. Relatives force you to become more tolerant.
A good attorney will protect you and your wife. You can have the estate reimburse you for the legal advice necessary; it is a legitimate expense.
As already advised above"time to see an attorney privately".Even i don have a better advice for you.
as you dont have any trust on your sister in law,so do it asap.
all the best…