Selling family property

[justginger]

How do you value something that has been in your family for ~100 years, but to which you have no actual attachment? At what point is it worth enough to sell, despite not NEEDING the money? When it's worth over a set amount, or when its percentage of value gained can't be dismissed? And at what point would that be? 50%? 100%? 300%?

I feel like I may be oversentimental and perhaps making a poor financial decision based on emotion that is (maybe) misplaced, and am curious as to how other PSers would feel.

 

[Sky56]

It's a complicated question. You will know in your heart when it feels like the best time to sell...but first, is there anyone in the family that you think has some attachment to the item and would treasure it? If so, I would first contact them. If not, I would sell it when you feel it is right. It is hard to predict future value.

 

[diamondseeker2006]

The only thing I can relate to this is family land that has been in my husband's family for like 300 years! It is out in the country and it wouldn't bring a lot of money, but I would consider it a burden to just have to pay taxes on it! I am not sure if it will be left to my husband but I have a feeling it will since he is the oldest. None of our kids will want it, I am SURE. So what will happen is that my husband will feel an obligation to keep it and if I outlive him, I will sell it the first chance I can! (Shhh, don't tell!) But I actually do have a thought of asking him if he'd be willing to sell or donate most of it and that might make him consider it if we kept just a few acres.

My feeling is that if I didn't pay for it, I'd sell it anytime I felt like it!

 

[VRBeauty]

Is this something that you could expect to appreciate over time? Is there a possibility that you will need more money at some point (i.e., that you might want to help your own kids or a niece or nephew out with college costs)? Is there a cost involved with keeping it, whether that cost be psychological (clutter, just having to keep track of it or move it with you) or financial (taxes)? Is there an opportunity cost associated with not selling - even if you don't need the additional money, is there something you could do with it that would enrich your lives?

 

[Indylady]

How do you value something that has been in your family for ~100 years, but to which you have no actual attachment? At what point is it worth enough to sell, despite not NEEDING the money? When it's worth over a set amount, or when its percentage of value gained can't be dismissed? And at what point would that be? 50%? 100%? 300%?

I feel like I may be oversentimental and perhaps making a poor financial decision based on emotion that is (maybe) misplaced, and am curious as to how other PSers would feel.

Depends on whether you're using it, and whether you have the $$ for the taxes. My mom has sold a lot of her inherited property, guilt-free; it wasn't really even a thought that she would hold on to all of it. I don't think my grandparents intended that she actually live in the properties or actively use it--I think they just intended to leave their kids with something, which they did, and which has benefited my mom through its sale. I think she did keep some small amount of property, but, not most of it.

 

[justginger]

The only thing I can relate to this is family land that has been in my husband's family for like 300 years! It is out in the country and it wouldn't bring a lot of money, but I would consider it a burden to just have to pay taxes on it! I am not sure if it will be left to my husband but I have a feeling it will since he is the oldest. None of our kids will want it, I am SURE. So what will happen is that my husband will feel an obligation to keep it and if I outlive him, I will sell it the first chance I can! (Shhh, don't tell!) But I actually do have a thought of asking him if he'd be willing to sell or donate most of it and that might make him consider it if we kept just a few acres.

My feeling is that if I didn't pay for it, I'd sell it anytime I felt like it!

It's somewhat similar to this, DS - it is farmland. The farm my dad grew up on. He seems to have no attachment to it and will gift it to my brother and myself, 50/50 (his portion, of course, as my deceased uncle's children will be getting part of it as well).

I naturally gravitated towards my mother's side, and can only remember even visiting this farm half a dozen times in my whole life. However, when we went to Ellis Island a few months ago, I found my relatives on one of the passenger logs -- bound for that exact farm in northern Iowa. It made me sentimental towards it.

However, with the land sold, I can inherit the cash or be gifted the cash now, tax-free. If I inherit the land, I must pay tax on the rent, and when I sell, it will be liable for capital gains taxation. Dad is all for selling it, and it gave him pause when I said my first reaction was to keep it.

Another issue is the current value of land in Northern Iowa. As recent as 5 years ago, it was around $2500/acre. Now? It's quadrupled, sitting at $10-11,000/acre. I'm guessing that pricing is not sustainable for the area and there will be a price correction in the next year or two. It makes it more of a priority to decide what to do sooner, rather than later.

I think I should make myself get over the sentimentality. I will email one of my cousins though and see what she and her brothers anticipate doing with their portion, and if they want our part -- they grew up there, so their outlook will be far more personal.

 

[dk168]

Myself, older sister and younger brother are all childless, therefore, there is no one to pass on the family's bits and pieces.

Therefore, I am all for selling as much as possible, and benefit from the proceeds while we are still alive.

DK

 

[rosetta]

Could you sell a portion and keep a portion? Is the area big enough so that someone would likely buy a part of it rather than the whole?

I'll be selling all my inherited property except those which are generating money ie the rented properties. Inheritance tax is 40% in the UK unless the assets are given 7 years prior to death. Whatever you decide, I think it's a good idea to plan in advance. Don't know about you, but I have only just started to look into these matters and I am still very green. Have your family thought about setting up a trust, should you decide to hold on to the property beyond your father's life? It may help to maximise the inheritance for your own kids in future

 

[JewelFreak]

I am usually for keeping things in the family if possible but in your case, you'd be wise to sell it. I think your emotional reaction will fade in time -- it's a neat discovery that your family headed right there, but has little to do with your own memories. A good idea would be to offer your cousins or uncle first right of refusal -- if they want to buy it & keep the land together, give them the opportunity. You never want to live there, so the only reason to keep it is that a relation bought it years ago -- otherwise, it has no attachment for you. The money would benefit your family -- I'm sure your ancestors who owned it would be delighted they could contribute to that.

--- Laurie

 

[momhappy]

My only piece of advice is to make sure that you understand how your decision will affect others (like your cousins who grew up there, etc.). My husband had a family vacation property that was sold and it was incredibly emotional/painful for us (and our children, who had vacationed there every year since birth). We still have hard feelings for the family member who sold it (for her own personal gain) and our relationship with her will never be the same.

 

[packrat]

We have farm ground that's been in the family since my dad's side came over from Sweden back in the day. It was split between my gramma and her siblings, and as the siblings passed away, their kids always wanted to sell, so my gramma kept buying it up. Gramma passed away last year so now it's split between my dad and Uncle. It's always been set up so that if one person wants to sell, it gets sold. So, we're waiting for my Uncle (who is in bad shape health wise and will need the money) to want to sell...then the land will be gone b/c my parents can't take it all on. I don't get the point of it when it's farm ground-that's guaranteed income every month forever, for the family-why sell?

Now my brother's wife inherited some land w/a cabin that was her dad's...she wants to keep it. She has no ties to it and didn't have a close relationship w/her father. It's not income land, so they're paying for upkeep. That seems silly.

 

[SB621]

I would personally sell for a few reasons:
- I dont believe in being emotionally attached to places or items.
-I think when you have or keep stuff for an emotional attachment especially land or perhaps a child hood home you limit yourself to what you could be doing or places you could be going.

when my parents pass away I will be selling my childhood home. I don't have interest in doing anything with the house or land. It will just sit there. I would rather sell it to another family who will cherish it for what it is. I will take the money and do something with my family (or donate it) that we will enjoy. Perhaps paying off our mortgage, buying a vacation house or going on a vacation...the list sort of goes on. The point is I don't want to hold on to memories of the past when I can create new memories. This is just my opinion though. I'm not sentimental about most things, while others our. I think if you sell you need to ask yourself if you you will ever regret it. Perhaps you could also do the best of both worlds and sell to a family member That way it stays in the family but you are no longer responsible for it??

 

[kgizo]

I would sell. Owning prop is a responsibility. You have to pay taxes. The neighbors will expect you to clean it occasionally. What if local kids start partying on it or a trespasser gets hurt? Also, family/friends may have expectations since you won't be using it. Perhaps they'll want to camp there or store livestock. Some of the best advice I've received about when to sell an asset is to flip the scenario; if you got a surprise bonus at work and the land was for sale would you buy it? I'm guessing no. Perhaps hire an aerial photography or commission a painting first, that way you could document the family history value to share with others.

 

[MichelleCarmen]

I would sell. Owning prop is a responsibility. You have to pay taxes. The neighbors will expect you to clean it occasionally. What if local kids start partying on it or a trespasser gets hurt? Also, family/friends may have expectations since you won't be using it. Perhaps they'll want to camp there or store livestock. Some of the best advice I've received about when to sell an asset is to flip the scenario; if you got a surprise bonus at work and the land was for sale would you buy it? I'm guessing no. Perhaps hire an aerial photography or commission a painting first, that way you could document the family history value to share with others.

I would also sell the property because of the above reasons...responsibility, maintenance, and also because the land is in a different country from where you're at. Unless you think you'd want to live there, I'd move on from it!

 

[sonnyjane]

I would also sell.

Not that you asked this, but one thing I've been focusing on with my therapist lately is the cluttering of my life due to a need to hang on to material items for the purpose of "keeping memories" instead of just having them in my head. In your case, for all the reasons everyone else has mentioned, I'd sell!

 

[blackprophet]

Hmm I would second the keep a piece suggestion.

Not sure how big it is, but if you are feeling sentimental about it, you could have the sale terms written up so you retain even a 1'x1' plot and whoever owns the rest can use it with no charge. So at least a piece stays in your family ownership, but you don't have to worry about upkeep. Just a suggestion.

 

[partgypsy]

I would definitely ask the other side of the family if they would like to buy it, or what their thoughts are. I do know it can be ugly when two families both inherit the same land. At the very least if you do become amenable to selling to give the other side of the family the right of first refusal (give them the chance to buy it before offering it to the public).

 

[momhappy]

Yes, definitely give family the first right of refusal, although, bear in mind, that doesn't always alleviate family politics/drama...

 

[Karl_K]

Get the ownership settled into one or 2 hands now if that means selling it do so.
Having property with a bunch of owners with no clear contract is a recipe for disaster.
A while back a family friend and her sister decided to sell the old homestead.
Their brother had passed away and his estate was mixed up mess with ex-wives and a 8 or 9 kids.
Everyone agreed to sell except for one of the brothers grand-kids who had inherited from his parents and kept it tied up in court for over 5 years.
After expenses there was pretty much no money left for anyone.
No matter what you do get the ownership settled and on paper while all of the original heirs are alive and in sound mind.

 

[longtimelurker]

Get the ownership settled into one or 2 hands now if that means selling it do so.
Having property with a bunch of owners with no clear contract is a recipe for disaster.
A while back a family friend and her sister decided to sell the old homestead.
Their brother had passed away and his estate was mixed up mess with ex-wives and a 8 or 9 kids.
Everyone agreed to sell except for one of the brothers grand-kids who had inherited from his parents and kept it tied up in court for over 5 years.
After expenses there was pretty much no money left for anyone.
No matter what you do get the ownership settled and on paper while all of the original heirs are alive and in sound mind.

ditto ditto ditto.