Farm Transfers Which Become Effective While the Parent Is Still Alive

Abstract

Lawyers have a pat Latin phrase to describe transfers that take effect between living parties. They are called inter vivos transfers—“between the living.” In general inter vivos transfers of the family farm from parent to child can take one of several forms:

• 1. Purchase arrangements under which the son buys the farm for money, support or other services.

• 2. Lease arrangements under which the son becomes the present operator of the farm and relies on the law of inheritance, his parent’s will, or a contract to make a will to acquire a greater interest in the farm later.

• 3. Gifts by which the parent deeds to the son part or all of the farm, or a remainder interest to take effect when the parent dies.