Agricultural Economics Department
Date of this Version
7-16-2024
Document Type
Article
Citation
Cite this work: Groskopf, J. “Ideas for Estate and Transition Planning: Gifting Ownership.” CAP Series 24-0701, Center for Agricultural Profitability, University of Nebraska-Lincoln, July 16, 2024. DOI: 10.32873/unl.dc.cap040.
Abstract
For many farm and ranch families, bringing children or grandchildren into the operation is the ultimate goal. Successfully bringing additional family members into the operation may require some creativity as all parties need to maintain a viable standard of living. This article is part of a series that will highlight ideas and tactics for bringing another family member into the operation.
A strategy that is gaining popularity is the gifting of shares or a percentage of the business from the owner to their heirs. In this article, the person gifting shares, or ownership is called the donor, and the person receiving shares or ownership is the donee.
To employ this strategy, you must have an entity structure that allows for the transfer of shares or changes to the percentage of ownership, such as a partnership, LLC, or corporation. These shares or a percentage of ownership could be gifted to the done while the donor is alive or at the donor’s death.