O/T Fair market value.

My wife is executor of her mothers estate which needs to be settled after her mothers sudden death 2 months ago. Her mother had 2 large parcels of farmland in the area and each of her brothers have been renting it for the past years. In her trust it is stated to be sold each parcel of farmland to each brother using the 2032A Statute. My lawyer said there is two ways to achieve this number that they should pay - appraised or she goes to three adjoining renters of each of the parcels (a total of 6 farmers) and ask them to tell her what they paid for rent each year for the past five years, including this year. He insists this is the best way to do this. She has told him 3 times she wants it appraised to achieve this. Any opinions on this? Not only would it be embarrassing to call these unknown neighbors out of the blue but also I can't imagine anyone would give out that information in this competitive farm rental area of southern Minnesota. She told that to the lawyer and he said it's never been a problem before. This leads me to believe he has not done one recently or he is lying. Any comments or experience with this would be helpful. Thankyou.

A lawyer wanted us to do that when my Dad passed away. He gave us 3 names of our neighbors that he knew - everyone of them refused to cooperate with what the lawyer wanted. I then gave him my figures and he went with that.

I think most people would not want to get involved; no matter what they do or say, someone will probably end up mad at them so they don't want to get involved.

A lawyer lying? Why I never heard of such a thing(LOL)
Get rid of the crook and get a couple independent appraisals and average them.

Get rid of the Idiot lawyer. Call a real estate person and ask them what the land is worth you will get a better answer since they deal in this every day.
Walt

What is the tax valuation on it?

Family went with a paid appraisel on mothers land to sell to brother. Appraiser said land and house was worth X amount. Wouldnt add any for grain bins or 2 barns or other sheds. I would have given at least 30 thousand more for the place but the others wanted the brother to have it. Just ask a couple of realtors for a fair price and average out.

well here in canada the land appraisal is a must unless she had the selling price quoted in the will. i am fighting a similar deal. i honestly believe the lawyers (liars) do not conduct the will properly so they can get future income later from the estate, when everyone starts fighting. i have told my liar that.

She needs a new "hired gun". The guy she is using is an idiot. You can have an appraisal done just about anywhere in the country for a few hundred dollars. The better ones will list several comparable properties that have sold in the last year or two. That makes arriving at a fair market price pretty easy.

I think I have to add here that it is in her mothers will that brothers get it for the reduced price as per statute 2032A. No one has a problem with them getting it for the reduced price. It is the method used to arrive at that price that we are questioning. There is a formula used in the statute that uses the appraisal method or asking neighboring farmers what they have been paying their landlords for the last five years. That's where I have a problem. It is going to ruin my good reputation in the neighborhood that we have the nerve to ask such a personal question. If one of my neighbors would call me and ask such a question, I would tell them it is none of your business and hang up on them. If you can arrive at the numbers to plug in the formula by having it appraised, then I think that is a small price to pay to not em barres yourself.

Sale value and rental value are almost unrelated, in this day of insane competition to rent more land from owners who don't want to sell. Its one thing to pay too much rent while commodity prices are high, knowing you can bail out if prices fall; but most will think twice before paying an outrageous purcahse price, because you're locked in for life.

I agree that the lawyer doesn't seem to "get it" (or maybe he's in cahoots with someone). Get a smarter one.

Only fair way is get a fair market value appraisal, by an agricultural appraiser. Around here, Farm Credit has ag appraisers, and they hire out for private jobs as well. DON'T get a residential appraiser just because he's cheap- this is no place to economize, as hundreds of thousands of $$ are at stake. You need someone who actually knows what he is doing.

Thanks everyone so far. I had my wife read your responses and she asked me to post this related question. "has anyone ever heard of changing lawyers in the middle"

My dads will said fair market value based on 2 independent appraisals from recognized real estate appraisers, not realtors. It was stated I had first choice to purchase and got lucky because the appraisers didn't recognize the great location and only based their appraisals on other acreages with mobile homes. The 2 appraisals were only $5000 apart. The land was 10 acres, 5 minutes away from a growing town with a fancy new golf course development and 15 minutes from a major city. I knew the land was worth more but went by the appraisers numbers. My buying it did get my siblings their money right away though instead of putting the property on the market and waiting who knows how long to sell it. Also no realtor fees.

Get it appraised and look for another lawyer.

(quoted from post at 16:35:39 11/11/12) Thanks everyone so far. I had my wife read your responses and she asked me to post this related question. "has anyone ever heard of changing lawyers in the middle"

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bsolutely