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INTERGENERATIONAL LAND TRANSFER Becky Hagen Jokela Cindy M. Petersen

INTERGENERATIONAL LAND TRANSFER Becky Hagen Jokela Cindy M. Petersen Regional Extension Educators, Family Resource Management. Decisions about both titled and non-titled property are important. Non-titled personal property: Owner is not identified with a written document

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INTERGENERATIONAL LAND TRANSFER Becky Hagen Jokela Cindy M. Petersen

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  1. INTERGENERATIONAL LAND TRANSFER Becky Hagen Jokela Cindy M. Petersen Regional Extension Educators, Family Resource Management

  2. Decisions about bothtitled and non-titled property are important. • Non-titled personal property: Owner is not identified with a written document • Fulfilling last wishes and distributing personal possessions - 5 times more likely to be a source of family conflict during legacy than the distribution of finances (Source: Allianz 2005 study of children with deceased parents) • Involves the hopes and dreams for one’s property.

  3. Families and Inheritance • This is not simply an economic and legal issue. • It involves complex emotional and family relationships. • There are economic and emotional consequences. • “Who gets what” can enhance or destroy family continuity.

  4. Challenges Unique to Transfers • Sentimental meanings and emotional decisions. • Preservation of memories, family history, and family rituals. • Being “fair” is more complex. • Value and meaning differ for each individual. • It’s difficult to measure worth or value. • It’s impossible to divide items “equally.” • Possible lost hopes and dreams for property. • Early planning and communication benefit.

  5. Recognize the Sensitivity of the Issue • Denial of mortality - your own and other’s • Fear of how motives may be interpreted if you bring up the issue • Potential for conflict • Family secrets may be disclosed

  6. Avoid inaccurate assumptions about motives! • Givers may be surprised, dismayed, and hurt by responses from intended recipients. • They may fear “receivers” will sell gifts. • Human factor: Individuals may not be interested in property.

  7. Cautionary Tales: • “Not What Dad Wanted” • “A Tale of Two Sons” • “Deathbed Planning”

  8. Breaking the silence . . . • Determine who needs to talk? • Spouses/partners • Siblings • Across the generations: • Adult children and aging parents

  9. Talking tips . . . • What land issue do you want to bring up? • Why do you want to talk about the issue? • Use “I-messages” to describe how you feel and what you hope might happen. • Remember that listening is a part of communicating we often forget. • If others initiate land conversations, be willing to listen as well as talk. • Respect that others may not be ready or willing to talk when you are.

  10. Talking tips . . . • Look for natural opportunities to talk. • Ask “what if” questions. • Use case studies or land examples from other families/friends. • Questions to ask: • What’s the most important thing I should know about . . . • What concerns you about . . . • What fears do you have about . . .

  11. Jumpstart Conversations • View GYPP video/DVD as a family. • View Ties to The Land DVD case studies. • Share worksheets from both workbooks. • Ties to the Land Resource List. • Print “free articles” from GYPP website. • Critical Conversations about Inheritance: Can we talk? • A top ten list for Decision Making • Inheriting Memories • Tips for Planning Ahead

  12. Identify and Prioritize Goals… • Communicating and maintaining privacy? • Improving family relationships? • Being fair to all involved? • Preserving memories? • Naming long-range goals. • Passing on individual/family hopes and dreams.

  13. “I just want to be fair” • Family members have different “rules” or perceptions of what is fair: • The outcomes or who gets what • The process of how things are distributed When the rules are violated, decisions are considered unfair!

  14. Common Transfer Rules • Equality - treating everyone the same • Equal number of items • Equal “value” • Equal chance to purchase • Equitable - takes differences into account • Contributions • Needs • Personal Characteristics

  15. Is the Process Fair? Deciding how to decide involves: • Who’s included (grandchildren, in-laws) • How • Is everyone informed? • Are lists or wills, followed? • How is value measured? • When (Timing) • What (methods, standards, consistency)

  16. Remember: • Different perceptions (of what’s “fair”) are normal. • Talk about what “fair” means to your family. • Fair outcomes: Clarify decision rules • Fair processes: Who, What, When, How, What if… • Determine where family members agree or disagree. • Reduce misunderstandings, inaccurate assumptions.

  17. Avoid inaccurate assumptions! • Identify items that have special meaning • What items? • Why important to you/others? • Who should receive and why? • Share stories/meaning • Discuss “sense of place.”

  18. Consider Distribution Options and Consequences • There is no one perfect method of transfer. • Seek creative solutions. • Stay focused on your goals. • More transfer options are available when planned prior to death. • Each method of transfer has consequences. • Transfer according to state laws.

  19. Passing on Forests in Families: • Shareholder meetings • Gifting • LLC: Limited Liability Company: • Other:

  20. Limited Liability Company (LLC): • Helps to leave forests and forest management plans to children. • Maintains management traditions. • Keeps lands intact & in the family. • Removes the burden of ownership from any one heir.

  21. LLC: • Helps to pass forest lands within the family. • Creates a management structure to continue current goals and objectives. • Flexible, simple to set up and manage. • Family members form the LLC. • Family members are recipients of both tangible and intangible forest benefits. • No member is forced to “carry out” legacy. • The LLC is an operating agreement.

  22. Options Have Consequences • Gifts • Verbal or “someday” promises • Masking tape/labeling items • Public auction • Auction within family • Pilfer items • Donating • Doing nothing . . . • Minnesota intestate and succession laws apply. Non-titled property is part of one’s estate.

  23. Lack of communication or miscommunication Value conflict: Different attitudes, beliefs, or values Conflict Discrepancies in expectations about role performance Unresolved prior conflicts

  24. What action steps will you take? Please complete the evaluation before leaving. Thankyou!

  25. Sources • Marlene Stum, University of Minnesota Extension Family Resource Management Specialist • Who Gets Grandma’s Yellow Pie Plate University of Minnesota Extension • Ties to the Land: Your Family Forest Heritage, Oregon State University Extension University of Minnesota Extension is an equal opportunity educator and employer. For Americans with Disabilities Act accommodations, please call (800) 876-8636.

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