Looking for opinions from mn people.
I live on a 34 acre building site, 27 acres tillable. My grand niece and husband rent the tillable, and own the remaining 80. He wants mine, and i want him to have it. He will pay cash for tillable or for entire lot, with me staying here until i can’t. They’re good people.
Visiting with him last night, he mentioned maybe c4d. Good idea, or bad? I don’t need a lump sum.
I sold a large building along with the business on Selby on contract. A little unsettling due to the risk of getting it back. A pro was I got 7.5% interest. The business was a separate contract from the building.
I’ve also bought land on a contract.
It doesn’t sound like them defaulting is much of a risk since they already own a big chunk. It’s common to have a balloon payment due after X amount of years. For example the payments could be amortized over 20 years with the balloon due after ten, thus keeping payments down.
I’m not sure your age or health but one thing to consider is getting full payment in your lifetime (If that matters to you)
It sounds safe, just be sure all the it’s are crossed and I ‘s dotted.
My health isn’t the best, I was wondering about a trust. I have 3 daughters.
My health isn’t the best, I was wondering about a trust. I have 3 daughters.
considering the magnitude of this decision, this is probably something you will want to discuss with a professional. This site is great for some things, and certainly you will find no shortage of opinions on what to do with your finances lol….still I would recommend talking with a professional on the matter so your daughters are well looked after
I plan to, just looking for opinions and first hand knowledge, and maybe some questions to ask the atty.
Thanks
My health isn’t the best, I was wondering about a trust. I have 3 daughters.
That’s a good idea.
I’d have a real estate attorney prepare the contract papers but not until the trust is established so that it can be included in the crd.
I’m not following you on the acreage break up. But in general a C4D can be a good option for two willing good faith parties. You will likely both want to get your own attorney, to draw up the contract, and have him get his own attorney to review the contract. This step isn’t necessarily required, but for a small amount of $ it ensures each party enters into the contract fully aware of what it entails. Also, your attorney should be able to advise on the tax and insurance implications as well.
IMHO, I would say win – win if the cash you get for the tillable is equal to or more of what the remainder is valued at in case of default.
You might want to discuss this with your daughters first, to get an idea of their feelings about this. A couple of years back, I approached a neighbor about buying a 17 acre parcel that adjoins my land. He was interested, and said he would get back to me in a few days. Well the next afternoon when he pulled in the driveway, I was hopping for the best, but not to be. Although he still would have over 500 acres of his own land left, if selling me this piece, after letting his kids know about my offer, they didn’t want him to sell it. As much as I wanted that land, I understood, and we are still friends.
My health isn’t the best, I was wondering about a trust. I have 3 daughters.
I’ll cut to the bottom line first. You need an estate planning attorney.
There are a lot of moving parts here. And business dealings with family are a huge danger zone, not for you so much as for setting up issues between your heirs down the road.
First, what would the value of the contract be and what is the length?
On a piece of land, if you sell for market price, you could be looking at a long contract of 10, 20, or more years.
Now consider your own health and age. Not to be morbid, but how likely is it that you’ll live to see the contract paid off? The potential problem I see here is that the contract could survive longer than you and then your other two daughters could end up being the overseers of the remainder of the contract essentially being paid by their sister. Lots and lots of potential issues here.
A trust could be a much better way to go, but only an estate planning attourney will be able to guide you through this situation to find the best way forward.
BTW, you have a well-thought-out will, right? If not, add this to the list for your visit to an attourney and get it done or updated.
Grouse
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