Avoiding Inheritance Conflict When the Farm Is Held in a Corporation

The Goal

Keeping Peace Where it Matters Most

“We’d rather give everything away to charity than see a big family feud over an estate settlement.”

When this farm couple came to us, they weren’t thinking about dollars and documents—they were thinking about their family.

They had experienced firsthand how estate disagreements can fracture a family. After going through a painful conflict over a previous generation’s estate, they wanted to ensure their own legacy wouldn’t carry the same burden. Family meant more to them than the farm itself—so much so that they expressed they’d rather give everything away than see it cause a fight among their children.

Their goals were clear:
  • Preserve harmony among their children
  • Prevent any disputes during the settlement of their estate
  • Create a path for the farm to continue for those who have interest in its future


This wasn’t just about business. It was about love, legacy, and leaving behind more than land.

The Challenge

An Inherited Structure, But an Unclear Future

As we began working with the couple, we found that their operation was structured within a corporation established in the 1970s, which meant their children would one day inherit shares of the corporation, not individual parcels of land. While this setup had benefits, it also introduced complexity.

The buy-sell agreement in place to govern future transitions of ownership lacked a clear method for determining value. Specifically, it stated:

“The party wishing to sell their shares will engage a referee and the parties wishing to purchase shares will engage a referee to determine the fair market value of the shares of stock. If the referees cannot agree then they shall engage an umpire.”

On paper, this might seem like a solution. But in reality, it created an uncertain—and potentially contentious—process from the very beginning. Without a clearly defined method or trusted standard for valuation, each party could interpret the process differently, setting the stage for delays, disagreements, and emotional strain.

 

The Recommendations

At UnCommon Farms, we believe that legacy is more than land—it’s about preserving relationships, values, and a shared sense of purpose. Our recommendations were built around those principles.

1. Clarify the Valuation Process

To remove uncertainty, we worked with the family and their advisors to:
  • Develop a specific, fair, and objective process for valuing shares of the corporation
  • Engage a qualified business valuation professional (because valuing corporate equity isn’t the same as appraising farmland)
  • Update the buy-sell agreement so it was written for people—not just lawyers and eliminate ambiguity and reduce the chance of future disputes

When everyone understands the “how” and “why” behind the numbers, it creates peace—long before any decisions are made.

2. Create Space for the Whole Family to Understand

To ensure alignment and understanding, we facilitated a family meeting where Mom and Dad could speak from the heart:
  • To explain their intentions
  • The structure of the corporation and revised valuation process could be clearly explained
  • Family members could ask questions, raise concerns, and clarify expectations while the parents are still actively involved

There’s power in hearing directly from your parents. This approach helps dispel misconceptions and fosters transparency—two vital ingredients for trust.

3. Begin Passing Down Leadership, Not Just Land

Beyond estate distribution, we encouraged the couple to begin preparing the next generation—not just for ownership, but for leadership.
  • Introduce the business side of the farm involving them in management and decision-making
  • Teach management responsibilities by providing training and guidance on how to oversee a corporation
  • Give real experience with what it means to steward the operation by creating shared accountability for the land and operation it represents

That way, when the time comes, it’s not a mystery—it’s a mission the next generation is ready for. This prepares the family not only for inheritance—but for long-term stewardship.

What Was Said

“We’d rather give everything away to charity than see a big family feud over an estate settlement.”

img-field

Watch Video

Related Posts

Succession Strategies That Protect Retirement and Support the Next Generation

The Goal Empowering the Next Generation While Preserving Retirement Security A multi-generational farm family approached UnCommon Farms with two interconnected goals: Transition ownership of the operation to the next generation without burdening...

See Full Article

Preserving the Family Legacy Without a Farming Heir

The Goal Ensure the Farm Continues Beyond Retirement—Even Without Family in the Operation “We’d like to see the farm continue—but none of our children farm.” A long-time farm couple approached UnCommon Farms with a deeply personal challenge: they...

See Full Article

Preserving a 150-Year Legacy Farm Through Strategic Succession Planning

The Goal Safeguarding Land and Family Legacy for Future Generations This multi-generational farm family approached UnCommon Farms with a strong sense of purpose: to ensure the farmstead their ancestors established over 150 years ago would continue...

See Full Article

UnCommon Knowledge, UnCommon Results

We get it – running a farm is tough. That's why we offer practical resources to help you tackle everyday challenges:

Business Management: Learn how to structure your farm for success, set smart goals, and boost efficiency.

Financials: Understand your farm's financial health through actionable resources and expert guidance.

Human Resources: Hire, manage, and retain a strong team effectively with expert insights and clear strategies.

Risk Management: Access information on risk identification and mitigation techniques specific to agriculture, including the latest tools and insurance options to protect your farm's legacy.

Strategic Planning: Receive expert insights on developing strategic plans tailored for family farms, including innovative strategies and market trends to ensure long-term success.

Succession Planning: Get clear steps and real-world advice for ensuring a smooth handover to the next generation.

Fuel your farm's future with expert advice. Subscribe to our free newsletter!