No obligation. No hourly billing. A straightforward conversation about your situation.
100% Confidential. Flat-fee pricing.
Farm succession planning decides who will own the land, who will run the operation, and how the next generation takes over. A good plan keeps the farm whole for the child who farms while staying fair to the ones who don’t. It also plans for taxes, nursing home costs, and the timing of the handoff.
Fair doesn’t always mean equal. Splitting land four ways often forces a sale, because the farming child can’t buy out the rest. Here are three tools families use, often together.
Who takes over changes the inheritance tax. Children and grandchildren pay 1% over $100,000 each. A niece or nephew pays 11% over $40,000. A hired man or other non-relative pays 15% over $25,000. A successor who isn’t a child needs extra planning. See our Nebraska Inheritance Tax Guide.
Gifts and inheritance are taxed differently. Land you give away during life keeps your old tax basis. Land passed at death usually gets a new basis at its value then. If your kids ever sell, that difference can mean a big capital gains bill. Gifts made in the last three years of life can also still face Nebraska inheritance tax.
Nebraska rewards renting to a beginning farmer. Under the Beginning Farmer Tax Credit Act (NextGen), a landowner who rents to a qualified beginning farmer can get a refundable state tax credit. It’s 10% of cash rent, or 15% of share rent, each year for three years, on a lease of at least three years. A relative can qualify if the parties meet the program’s succession plan rules. Applications are due November 1. Source: nextgen.nebraska.gov
Nursing home costs can derail a plan. Medicaid looks back five years at gifts. Moving land to the next generation without planning for that can backfire. See Elder Law and Medicaid Planning.
A handshake lease can get in the way. A verbal farm lease in Nebraska runs from March 1, and ending it takes notice by September 1. Put the family lease in writing as part of the plan. See Farm Real Estate and Leases.
Every succession plan is a flat fee. You get the price in writing before we start. No hourly billing, and no bill for a quick phone call.
We serve farm and ranch families in every Nebraska county. Main office: 2308 E 5 Rd, Henderson, NE 68371.
Kole Pederson grew up on a family farm and has more than 15 years of hands-on farm work. He knows the real questions: who runs the combine, who pays the rent, and how the books work. His Bachelor of Science from the University of Minnesota has four majors: Agronomy, Agricultural Business, Agricultural Systems Management, and Aviation. He holds a JD/MBA from Drake University Law School and is licensed in Nebraska and Minnesota. About Kole
Fair doesn’t have to mean equal. Many families keep the land together and balance shares with life insurance, other assets, or a buyout plan. We help you find a mix that fits your family.
Now. The best plans start five to ten years before the handoff. That gives time for the Medicaid look-back, tax planning, and a gradual transition.
Often, but not always. An LLC can keep land together and set rules for who can sell. It also adds paperwork and can change taxes. See Farm Business Law.
You can still keep the land in the family and rent it out. Renting to a beginning farmer may also earn you a Nebraska tax credit.
That’s common. We can help the family talk it through and write down what’s agreed. If a real dispute starts, we can serve as a mediator or help you find one.
Related pages: Nebraska Farm Estate Planning · Farm Business Law · Nebraska Inheritance Tax Guide · Elder Law and Medicaid Planning
Ready to start the conversation? Book a free 30-minute call. We’ll help your family take the first step.
Book a Free 30-Minute ConsultCall (816) MW-AGLAW
Last updated: October 27, 2026. This page is general information, not legal or tax advice for your situation.
