CPA Dave here. First...listen to John T. You need a good attorney and there are those who specialize in this. Then a good CPA...not just a "tax preparer". Don't feel bad for your folks, there are ways to structure this that keeps them in control.
The way we have done this in the past is to put the farm into a limited partnership. Parents are set up as general partners with 100% control but only 2% interest...1% each. They are also set up with 98% limited partnership interest. Over the next several years they "gift" you portions of their limited partnership interest each year using the maximum allowed without paying gift tax. Once the partnership is all set up by the attorney, it is generally turned over to me to administer. At year end I have an appraiser give me a value on the farm. We do this every other year and have the appraiser give two letters, one dated 12/31 and the other 1/01. I confirm value and have the attorney do gift letters for the correct % of ownership to transfer. The rest is handled on the tax return. Some folks have abused this in the past "discounting" the property so it is best to make sure it is done formally with appropriate experts and paper trail...in case the IRS questions the valuation. In the end, you and bro own 98% of the place but have absolutely no control. Folks own 1% each and control everything. You each get the last little bit in the will/trust. So don't feel bad because it will make the folks feel REAL good. They worked hard and they want YOU to have it without a lot of tax implications.
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Today's Featured Article - A Tractor's Point of View - by John Manley. I began my life on August 3,1941. I was actually built at different times and days but I was officially an M Farmall on August 3.I was real nice and shiny. That�s me, in the old picture, third from the left. I was loaded on that train and sent to a little town in South Carolina. I didn�t get to see much of that town. I was moved off the train fast and on to the dealer�s
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