I'm after some advice re succession planning, which is a minefield at the best of times.
'Theoretical' situation. Son works at home all life with father (not much input, treated as worker), other sibling has no interest and never worked on farm.
By 50 the essentially takes over the business, with father's blessing (father remains partner, but backseat) Lots of historic debt been built up (due to father;s dogmatic approach) and tough times ahead.
Son manages to turn things round and begins paying off debt.
At point of son taking over there are no 'assets' to speak of as debt wipes them all out, talk of succession / wills etc is essentially moot. However, as things improve, son not taking any money out the farm, putting all he/they make into paying off the debt, father says he's going to now give half the worth of 'his' share of the assets (land that son has worked to pay off) to his other child.
Hard question, as nobody wants to be selfish, but without the son changing things (with very ltd input from father) and paying off the debts there were no assets. Once mortgage / loans paid off, with son having used all the money he's generated, the none farming sibling suddenly gets handed their share...despite putting nothing in.
How do you sort that out?
There's many sides to this argument and many ways of looking very selfish or stupid.
All opinios valued.
'Theoretical' situation. Son works at home all life with father (not much input, treated as worker), other sibling has no interest and never worked on farm.
By 50 the essentially takes over the business, with father's blessing (father remains partner, but backseat) Lots of historic debt been built up (due to father;s dogmatic approach) and tough times ahead.
Son manages to turn things round and begins paying off debt.
At point of son taking over there are no 'assets' to speak of as debt wipes them all out, talk of succession / wills etc is essentially moot. However, as things improve, son not taking any money out the farm, putting all he/they make into paying off the debt, father says he's going to now give half the worth of 'his' share of the assets (land that son has worked to pay off) to his other child.
Hard question, as nobody wants to be selfish, but without the son changing things (with very ltd input from father) and paying off the debts there were no assets. Once mortgage / loans paid off, with son having used all the money he's generated, the none farming sibling suddenly gets handed their share...despite putting nothing in.
How do you sort that out?
There's many sides to this argument and many ways of looking very selfish or stupid.
All opinios valued.