PEORIA, Ill. – It’s a sad scenario that plays in farm families across the U.S.: siblings and generations torn apart by the decision of whether to sell or retain a farm operation following the death of a family patriarch or matriarch.

According to University of Illinois Extension farm business management educator Kevin Brooks, solid planning can help eliminate some of the bitterness commonly associated with these tough conversations. Brooks, author of a series of online articles on the topic of farm estate planning, attended the 2024 Greater Peoria Farm Show in December to talk about the proactive steps families can take to achieve a more positive, stress-free resolution.

“In the Midwest, less than one out of every five farm families have an actual estate plan in place. By not having one in place they actually do have one in place – the state will dictate it for you,” said Brooks, whose article “When Generations Disagree on the Future of the Farm,” and related Farm Estate Planning Series articles can be accessed at extension.illinois.edu/blogs.

Speaking to farmers assembled for his seminar at the Greater Peoria Farm Show, Brooks offered pointers on how to conduct a family estate planning meeting that is peaceful, productive and considers the needs of all who will be affected. Brooks recommends five acts a farm owner can perform to minimize the stress of estate transition for loved ones:

- Have an open and honest conversation with your children about the future of the farm.

- Ask direct questions, with no pressure or guilt.

- Listen to understand.

- Work out a plan with them for the future of the farm.

- Get outside help, if needed.

“You need to find out what your family wants. If you are putting together a plan that they aren’t interested in, you are not gaining anything either,” he said.

To reduce bitterness and bad outcomes, Brooks advises farm owners to consider that each of their children possess unique desires, needs and perspectives. Their hopes, dreams and plans for the future may vary from theirs, and the world is likely a much different place from when they first turned the soil. Most importantly, farm owners should strive to speak openly with their heirs and listen to understand all sides.

“A lack of communication can blow a family apart,” Brooks said. “I think the best thing you can do is to work on communication. Minimizing your taxes is secondary to family communication and doing what you can to reduce family conflict after you are gone.”

Giving heirs “ownership” of the farm by involving them in the estate planning decision-making process and making decisions accordingly will likely preempt future frustrations, according to Brooks. For this reason, he encourages farm owners to initiate family estate planning discussions sooner rather than later.

“Maybe it’s time to fit the farm’s future into your children’s lives by asking them what they want rather than making the farm theirs for their disposal and possible frustration,” he said.

On a related topic, Brooks, who is licensed in Illinois as a real estate broker with harVestco LLC in Champaign, said he expects no policy change affecting the current federal estate tax exemption (which, for people who passed away in 2024, was $13.61 million) under the second Trump administration. “I’m expecting a lot of things to be different during (Trump’s) second administration than in his first,” he said, “but I have no reason to think anything will be changing with the estate tax at this point.”

As for the state of Illinois’ estate tax, Brooks is not optimistic about State Sen. David Koehler’s (D-Peoria) 2024 bill that would make farm estates subject to an exemption of $6 million, rather than the current exclusion amount of $4 million. The bill, introduced in January of last year, is still pending in the Senate Assignments Committee.

Brooks will be speaking about farm estate planning to an Annie’s Project group at the Tazewell County (Ill.) Farm Bureau in Pekin on Feb. 27-28. Groups and individuals interested in receiving farm estate planning pointers (not to be construed as legal advice) from Brooks can contact him at kwbrooks@illinois.edu.