Wife and her siblings inherited a farm

[wdlsguy]

What is the name of your state? Texas

My wife and her siblings inherited a farm in Wisconsin. An attorney in Texas recommends they hold the property as tenants in common, an accountant in Wisconsin recommends they hold the property as an LLC. I just want to make sure an accident on the farm doesn't result in us losing everything we have. Suggestions?What is the name of your state?

 

[JETX]

My wife and her siblings inherited a farm in Wisconsin. An attorney in Texas recommends they hold the property as tenants in common, an accountant in Wisconsin recommends they hold the property as an LLC. I just want to make sure an accident on the farm doesn't result in us losing everything we have.

The issue of the form for the property is complex and depends on LOTS of variables (income, protection, tax planning,etc.). Presumably, the attorneys have far more information than the very limited you provide on this forum. Listen to them.

 

[wdlsguy]

I don't know how much weight to give the attorney since he's in Texas and the property is in Wisconsin. The property is supposedly worth over $600K, but the rent is only $10K per year, so my wife's share is only $2K per year (before taxes and insurance).

I don't like the idea of taking a potentially large risk for such a small reward, hence my interest in an LLC. It's hard to see how forming an LLC could increase my wife's liability, and her accountant favors an LLC for tax reasons.

 

[JETX]

I don't know how much weight to give the attorney since he's in Texas and the property is in Wisconsin. The property is supposedly worth over $600K, but the rent is only $10K per year, so my wife's share is only $2K per year (before taxes and insurance).

I don't like the idea of taking a potentially large risk for such a small reward, hence my interest in an LLC. It's hard to see how forming an LLC could increase my wife's liability, and her accountant favors an LLC for tax reasons.

Hate to tell you... but you have NO say in this. It is HER property... not yours.

 

[pojo2]

. The property is supposedly worth over $600K, but the rent is only $10K per year, so my wife's share is only $2K per year (before taxes and insurance).

.

Heck the tenant must love them to death with such mismanagement of the property!

 

[wdlsguy]

Hate to tell you... but you have NO say in this. It is HER property... not yours.

I understand. My wife is the executrix of the estate and she has specifically asked me to look into the various options available to her and her siblings. So no concerns there.

It looks like the LLC doesn't provide as much protection as I had hoped in the event an injury happened on the property - suppose a snowmobiler crashed, broke her neck, and became a quadriplegic. I was hoping the most she could hope to collect would be the insurance and possibly the farm itself. I was hoping she couldn't come after the owners of the farm individually, but it sound like she could.

 

[wdlsguy]

Heck the tenant must love them to death with such mismanagement of the property!

If you look at it from a $ per acre point of view it's not too far out of line. Farmland is increasing in value there because of a desire by many to move into the country.