Letting the Children Figure It Out Is Not an Estate Plan

A retired farmer has one child working on the farm, while a second child lives far away. The man thinks he doesn’t need a will because his situation is straightforward, and the children will work things out since they’re smart and respectful. This approach is asking for trouble on many different levels. The article, “If you’re relying on your kids to ‘just figure it out’ after you’re gone, here’s your wake-up call,” appearing in Tri State Alert, explains just how many problems this mindset can create.

Even before addressing the distribution of assets, the family may face a long-term care situation that could easily decimate any savings. The family needs a power of attorney in place for both spouses, allowing the home and the farm to be transferred to the healthy spouse, if necessary. While Medicaid has a five-year window for transfers, transfers between spouses are not limited.

This will be the time to create other estate planning documents, including a healthcare power of attorney for each spouse, so someone can make decisions for them in case they are incapacitated. The child who works on the farm and lives nearby should be named so that they can act quickly on their parents’ behalf.

The next part of an estate plan is to protect the resources for the surviving spouse after the first spouse has died. If the surviving spouse also needs care and uses up all available cash assets, the person inheriting the farm may find themselves with no cash to run the farm.

In this type of situation, when one child is working on the farm and the other lives far away, balancing their needs becomes challenging. Money may need to be borrowed to figure out how to treat the children equally for their inheritance. If one person has worked on the farm for 20 years and the father, who sold the farm at age 65, dies at 85, does the child who stayed on the farm have to pay their sibling the increased value of the farm?

What if part of the farm has been deeded to preservation land? Selling the development rights is another aspect to be considered. A professional appraiser should be engaged to establish the farm's value, which will need to assess its agricultural use, calculate its value if it has been deeded to preservation, or determine its value if it is available for development.

There are many issues to address when the family’s assets include a working farm or family-owned business. Simply leaving the children to “figure it out” is not a solution. Begin by having a conversation with an estate planning attorney experienced in family businesses to create a plan for the short and long term.

Family farms and small businesses often carry more than financial value—they hold generations of memories and hard work. But without a clear estate plan, these legacies can become the source of painful disputes and financial strain. At The Werner Law Firm, our estate planning attorneys help families create thoughtful plans that protect both their assets and relationships, ensuring each child’s role and contribution are respected while maintaining fairness and clarity for everyone involved.

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Reference: Tri-State Alert (Oct. 3, 2025) “If you’re relying on your kids to ‘just figure it out’ after you’re gone, here’s your wake-up call”