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Sep 10 2012 12:00AM

 

Question

My grandfather recently passed away and left to my mother with the farm. However, she has no skills to deal with farms and animals and she wants to sell it. What do you think she should do with this money? Should she sell the land? 

Answer

Your questions “should she sell the farm” and “what to do with the money” will depend on your mother’s current financial situation.  If your mother does not need the farm’s assets for current living or future retirement expenses, then I would suggest that she review how this new asset fits in with her personal goals. Other questions to consider are:  

  • Could the farm be leased out to other farmers for income?
  • Is this a family farm that another family member could operate?
  • What is the real estate outlook for farm property in the area?  

These questions and other factors should be considered before making a decision.

If your mother does sell the property, the proceeds should be invested based on her short-term and long-term investment goals.  Generally, investments should be diversified and well balanced.  She should not feel rushed to make a decision regarding investments. 

If your mother needs help in planning she should consider contacting a CERTIFIED FINANCIAL PLANNER™ professional from the Financial Planning Association through www.PlannerSearch.org. A qualified planner can gather the proper data and provide her with the alternatives.  I also would highly recommend she meets with her CPA and estate attorney to review the tax impact of this new asset.

 

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