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Farm succession planning can be a complicated process for many farm families. A recent decision out of Minnesota involving a farm dairy’s succession plan highlights what can go wrong when farm families do not handle the situation. The parents had three children, and one child had moved back to take over the farm. The parents placed the farmland into a revocable trust with each child as a beneficiary to the trust. This trust eventually causes problems for the one child who moved back to the farm to continue its operation. The trust allowed the three children to co-own the property and granted one owner the ability to petition the court to partition (divide up) the property. This case highlights why farm families should develop plans to enable the child(ren) who want to continue the farm the ability to sustain the farm but at the same time be equitable to the non-farm heirs.Read More