"My attitude might have changed" - start preparing for it now ?? - give yourself more options??
What is a fair way to split up fariming assets to siblings
- Thread starter confusedsibling
- Start date
- Location
- South Shropshire
A father and mother can often run a business very successfully with their children. The rot sets in when the children’s spouses get involved in running the business, especially as the father and mother get older.
Family businesses are best split up between siblings at the very earliest opportunity, although it is often a very difficult process.
Family businesses are best split up between siblings at the very earliest opportunity, although it is often a very difficult process.
With all due respect, I think the op is not admitting the truth to himself, if there is such a song and dance over repair works carried out to a house, then there will be far greater cracks beneath, these will appear when the larger items and property are split.
The fireworks will truly start when children and grand children are brought into the equation, followed by the green eyed monster raising its head.
The children who spend their youth building the farm business are usually the ones who get shafted, as the children who have worked off farm still want an equal share of land and property from their parents.
The fireworks will truly start when children and grand children are brought into the equation, followed by the green eyed monster raising its head.
The children who spend their youth building the farm business are usually the ones who get shafted, as the children who have worked off farm still want an equal share of land and property from their parents.
So you're own home has probably risen equally if not more than you brothers in the time ,so he isn't quite the b*&_€××× you thought
- Location
- Cumbria
Blod
Member
@confusedsibling often the solution is just under the surface and found by not getting hung up on the detail. The finer points come later once you’ve agreed on the overarching objective.
There are professional mediators who can help you with this and most of us work online at the moment so you don’t have to wait or be limited in who you chose by location. Talk to a few, find out what they offer, their accreditation and experience and most of all whether you all have the “chemistry” to work together.
I’m CEDR accredited, work mostly via Zoom these days and don’t charge for an initial chat with key individuals to see if I’m the right person for your family or business.
There are professional mediators who can help you with this and most of us work online at the moment so you don’t have to wait or be limited in who you chose by location. Talk to a few, find out what they offer, their accreditation and experience and most of all whether you all have the “chemistry” to work together.
I’m CEDR accredited, work mostly via Zoom these days and don’t charge for an initial chat with key individuals to see if I’m the right person for your family or business.
Chae1
Member
- Location
- Aberdeenshire
These were my exact thoughts too. If there worrying about little things like the value of someone else's house there are much bigger issues simmering away underneath.
Blod
Member
Lazy Sod
Member
- Location
- Warminster Wiltshire
How old are your parents @confusedsibling, and what is their house like? Are they likely to want to move into a smaller one at sometime? If so would theirs suit you? What's the physical layout, where are the 3 house situated relative to the farm land and buildings?
- Location
- God's own County
it’s not really about value, no one is looking to cash in here. It’s more about cost to live here.
If we are splitting things up a bit then it seems fair that we cast off on equal terms,
Built them their own house a few years ago suitable for full retirement. None of us will be moving from our current abodes.
parents are late 70’s but going strong. wills etc all Relatively sewn up.
farm has two bases, they are at one, i the other, which works well.
- Location
- East Sussex
If you were a farm worker (which it appears you are) then the house is part of your employment as is the vehicle you use etc.
Why split off the house from the farm? Tax wise it is "protected" and you might as well maintain it out of the business.
Do you and your brother take rent from the farms on an equal share?
I learnt many years ago to separate the farming business from the land and houses.
Much easier to establish who gets what and as long as you have FBT's drawn up then there are no issues.
Why split off the house from the farm? Tax wise it is "protected" and you might as well maintain it out of the business.
Do you and your brother take rent from the farms on an equal share?
I learnt many years ago to separate the farming business from the land and houses.
Much easier to establish who gets what and as long as you have FBT's drawn up then there are no issues.
- Location
- 200 miles N,NW of New York
I think the OP will have to talk to her parents first about the situation, it may be right to split the houses off at a later date, in the mean time, repairs to the roof, windows and pointing of the walls, to make the house wind and water tight, and structurally sound,
This work can be put through the business for vat reclaiming, and reduce the tax bill,
All OK as your a farm worker living in the house belonging to the farm, this needs to be done before the split, explain that as you work on the farm, you have no other wages to pay for the substantial repairs that need done, and are not asking for anything more than your brother has had in the past, yet asking for the garden walls to be done might be pushing it, unless your brother had this done by the farm on refurbishment in years gone by,
The above will have the benefits of vat and tax and make it more viable in the long run,
As for the split after completion, the houses need to be valued by a couple of firms, each get a firm of your own choice, then if there id a difference in the property valuation, then the higher should pay half of the difference to the lower to make it fairly clear cut,
She will be better of getting her parents on side, explaining that she don't want to pull the wool over anyones eyes, but a fair and equal split as is says in the will after the parents day, nothing more and nothing less,
There might be an objection on the grounds of less profit for the shareholders, however there would be less profit when the other house was done, and you all managed then,
If the parents are reasonable they will understand the situation, and hopefully there will be finances available, if there is the possibility of and I use this example below
Say after work is done, and you think your house is going to be worth 350k,
Yet your brothers house will be worth 310k, this equals a difference of 40k,
So it would mean that you would have to give your brother 20k to make it equal,
If the business is short of cash it will be hard
However if you were to offer to pay 20k towards the overall cost, to allow the job to go ahead, this would be the proportion you would pay your brother, but explain that firstly he did not pay anything towards the cost of refurbishment to his house, and thus either still has the money to do what he wants with it, or did not have to repay a loan if he had to borrow it,,
Yes he is 20k down, but also never had to put 20k in to his house so its still fair from that point of view,
This work can be put through the business for vat reclaiming, and reduce the tax bill,
All OK as your a farm worker living in the house belonging to the farm, this needs to be done before the split, explain that as you work on the farm, you have no other wages to pay for the substantial repairs that need done, and are not asking for anything more than your brother has had in the past, yet asking for the garden walls to be done might be pushing it, unless your brother had this done by the farm on refurbishment in years gone by,
The above will have the benefits of vat and tax and make it more viable in the long run,
As for the split after completion, the houses need to be valued by a couple of firms, each get a firm of your own choice, then if there id a difference in the property valuation, then the higher should pay half of the difference to the lower to make it fairly clear cut,
She will be better of getting her parents on side, explaining that she don't want to pull the wool over anyones eyes, but a fair and equal split as is says in the will after the parents day, nothing more and nothing less,
There might be an objection on the grounds of less profit for the shareholders, however there would be less profit when the other house was done, and you all managed then,
If the parents are reasonable they will understand the situation, and hopefully there will be finances available, if there is the possibility of and I use this example below
Say after work is done, and you think your house is going to be worth 350k,
Yet your brothers house will be worth 310k, this equals a difference of 40k,
So it would mean that you would have to give your brother 20k to make it equal,
If the business is short of cash it will be hard
However if you were to offer to pay 20k towards the overall cost, to allow the job to go ahead, this would be the proportion you would pay your brother, but explain that firstly he did not pay anything towards the cost of refurbishment to his house, and thus either still has the money to do what he wants with it, or did not have to repay a loan if he had to borrow it,,
Yes he is 20k down, but also never had to put 20k in to his house so its still fair from that point of view,
- Location
- 200 miles N,NW of New York
I don't think so, the posts have a female touch to them
- Location
- God's own County
Not sure HMRC would define me as a farm worker exactly but certainly heavily involved in all that’s needed running land with associated assets
I do get my nails dirty most days in one way or another though!
siblings and I receive what we both feel to be fair remuneration In various ways.
sound words, thank you. I may cut and paste this!
not sure it matters for the purposes of this exercise.all my non farming friends would struggle to get their heads around this one, hence why I am leaning in on the TFF data base!
I obviously did,I just wiffed a bit of jealousy that's all,I'm sorry if I misread it
- Location
- 200 miles N,NW of New York
You can
- Location
- 200 miles N,NW of New York
Your correct it don't matter, and any advice should be natural,
But it does show i read all of your posts before making a comment,
Its seems a lot only read half before making comment, I do wonder if having only read half, means the comment is not taking in the full facts, and skewing there judgement
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2wheels
Member
- Location
- aberdeenshire
attitudes change. at 41 or even 55 i thought the same as you. however by the time i reached 60 the fun had gone out of the job even though the rewards were greater than they ever had been. brother was of the same opinion(maybe more so) and when our sister lost her dynamic hubby aged 64 that made us really think. none of the family were keen so the decision was made to sell up. in hindsight it was the right decision so never say never.
2wheels
Member
- Location
- aberdeenshire
aye i have needed a new knee and 2 hand operations since i retired. hip now giving bother. brother needed a new hip and has back probs as do i and it's certainly not sitting around that's the cause.