Family Farm

[eeric788]

What is the name of your state? Iowa
My father owns about 400 acres of Iowa farm land. Land is selling for about $3000-$4000 per acre right now. He is 76 years old and does not want to wait until he has passed away to pass the farm along to me. He wants to be living while it happens and be able to ensure it gets done as he desire. It has been in the family for over 100 years.

My question is - how do we go about doing this? I don't have the money to purchase it from him at market value. I couldn't afford the gift tax or any other high tax if he just gave it to me. Do we setup a Trust? Living Will? I need a little education before talking to an estate attorney for the first time.

Any advice you can offer is appreciated!!

 

[curb1]

life estate
n. the right to use or occupy real property for one's life. Often this is given to a person (such as a family member) by deed or as a gift under a will with the idea that a younger person would then take the property upon the death of the one who receives the life estate. Title may also return to the person giving or deeding the property or to his/her surviving children or descendants upon the death of the life tenant-this is called "reversion." Example of creation of a life estate: "I grant to my mother, Molly McCree, the right to live in and/or receive rents from said real property, until her death," or "I give my daughter, Sadie Hawkins, said real property, subject to a life estate to my mother, Molly McCree." This means a woman's mother, Molly, gets to live in the house until she dies, then the woman's daughter, Sadie, will own the property.