Louisiana has a rich history of generational farmers who have passed down their farming knowledge to the next generation. Louisiana has abundant water sources and fertile soil, sustaining farming traditions for centuries. Louisiana farmers have played a central role in contributing sustainable farming practices to the state’s economy. Passing down farmland from generation to generation has become a long-honored tradition that is a testament to teh hard work and commitment to family of previous generations.
This article will explore and explain the importance of keeping family legacies alive and well through estate planning. There are many obstacles to successfully passing down real estate in Louisiana and it’s important to take the necessary steps to ensure that the future generations are allowed to partake in Louisiana’s agricultural heritage.
What Happens if There is no Succession Plan in Place for Farmland in Louisiana?
Many believe their land will automatically go to the right person when they die. However, Louisiana has complex succession laws that could pose a few challenges if not done correctly. Without a succession plan, the state will determine the fate of farmland and other assets attached to or on the property. Louisiana has a strict set of laws and cases that determine who receives your property if you do not have an estate plan. This could be someone that you do not want to inherit your property. The Louisiana laws of intestate succession will come into play, and farmland could end up divided and sold to the highest bidder if the legal heirs decide not to keep the property in the family. Intestacy laws rarely align with the original wishes of landowners in Louisiana and could lead to family disagreements and long and drawn-out legal battles. The entire agricultural operation could be jeopardized by not having a succession plan to protect it.
Can Farmland Be Sold instead of Passed Down to Family Members?
Louisiana farmland can be kept in the family or sold. While most farmland owners opt to keep the family farm together and run by family members, there are often circumstances where selling the farm could make sense. Families often need to liquidate assets when farming family members pass away, and there may not always be someone willing to take over the farming production. Selling the family farm may be the best decision in some cases and could provide surviving family members with the freedom to pursue other opportunities. The decision to sell family farmland should be carefully considered and become part of the estate plan. It’s advisable to speak with various professionals such as an estate planning attorney, appraiser, and real estate agent to ensure proper steps are taken beforehand.
How to Involve the Next Generation in the Estate Planning Process
There are a multitude of benefits in involving the next generation in the estate planning process. Speaking with the future farmland owners will give them a sense of ownership and responsibility to the land. This is a great time to start teaching them about the process and to share expertise and experience with the next generation. Keeping them involved throughout the process will allow for a more seamless transfer to help them navigate the business side of things more easily. They will not only start out understanding the succession process and what to expect but will have time to think about their role in the future of the farmland. Listening to their input and involving them in the decision-making process clears the way for a seamless transition to the next generation of farmers.
How an Estate Planning Attorney Can Help
Louisiana estate law can be burdensome, but one small mistake can put your property into the hands of someone you did not intend. Louisiana law is unyielding when it comes to succession and you must have the proper legal documents in order before you die, or you risk your family not enjoying your property or fighting amongst themselves. An estate planning attorney can walk you through the process and explain potential pitfalls you must look out for. It’s important to partner with the right legal professionals that will have your best interests at heart and spend adequate time going over your options with you.
Progeny Law Firm assists clients with estate planning in Baton Rouge, LA. Call (225) 465-1090 or contact us online for a free consultation.
- Marriage, Divorce, and Parenthood: Estate Planning During Life Changes - September 28, 2023
- What is a Power of Attorney and Why Do I Need One? - September 21, 2023
- Choosing the Right Executor for Your Will - September 14, 2023
