Leaving a Legacy


It was tough finding a solution about protecting the farm through generations as a whole and we spent all of last winter going back and forth on various ideas before we finally came to something we could all agree upon. In order to complete our idea though, we were going to have to involve others more specialized in their knowledge base than we were and that would take time. As of this writing, we are 90% of the way there and hopefully in a month, we will have completed something that will better the world we all leave behind and leave a bit of a legacy.

In short, the first half of our solution was to create a trust into which we put all of the farm. By doing so, it ensures that the land will all stay together and per our wishes, never be broken up and sold at least during our lifetimes. However, tax bills are still due and succeeding generations will still have the ability to dissolve the trust and sell it off when the hassle of maintaining it becomes not worth any potential income and they would rather have money than land that they have no personal attachment to. 

So the second half of our solution was to give the land away to another entity that can preserve our wishes and not have to pay taxes every 25 years or so with each new generation. We donated it to charity.

The charity isn't just any charity but a very specialized one. This particular charity buys or is given land that is unique, endangered or somehow has extraordinary significance to our state and preserves it for eternity for others to enjoy. Because they are a not for profit charity, they don't have to pay taxes on the gift of land nor do we when giving it to them. Because there are no taxes, it can be passed in it's entirety without having to sell any of it. 

You might be asking, what does a charity that wants to preserve unique and endangered parcels of land in our state want with land with no unique qualities and can be found outside of every car window that drives across our state outside of cities. That is a good question. The charity will use our land eventually as an income source. The income that it provided for my parents and will someday provide for me and my kids, will one day go to this charity. They will use this income to buy even more land than they do today from funds they have to raise from a rotating set of donors. 

Perhaps the biggest emotional struggle of the entire deal was just coming up with a date for this gift to occur. In the end, we settled on 50 years from this year or 2076 on our nation's 300th birthday. By then, I will have passed 100 years of age and likely will not even be alive. Hopefully my children and those of my brother will be well into their retirement years and will have no further need of a regular income from the farm. Future generations, those not even born at this point, will receive no benefit from this deal other than they can say they are the descendant of those people who set up this trust and gift that will hopefully significantly change the future of our state by preserving even more lands for future generations to enjoy. 

Hopefully they and others will be able to enjoy what we have left behind, a legacy.

Comments

  1. If I could choose a "title" associated with my name, it would be "Philanthropist". However, with my meager source of income, I will not be able to have that designation. Honolulu real estate is so crazy expensive and limited, a 5,000 sq ft piece of land sells for a million dollars, with a building such as a house, it can be valued at $1.5 - 2 million. Very few families have the history of generational passing down of property here - for the most part, properties are sold in order to divide amongst the descendants. You are indeed blessed. Kind of reminds me of Scarlett O'hara and Tara.

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    1. In a way, many farms are the same way, i.e. sold in pieces to pay taxes and pass onto the next generation.

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  2. That's a well-thought out and ideal solution to a sticky problem.

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    1. I think it was the best solution we could come up with to keep it intact forever.

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  3. You found your way through a very challenging situation.

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  4. What an interesting solution. Great for the land, the environment and the state. But will your descendants resent having to give it up?

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    1. Thus far, since those descendants have yet to be born, I doubt they can hold too much of a grudge. My kids and my brother's kids however, should still benefit from the situation as if they had inherited it and honored our vow to never sell it.

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  5. "Society grows great when old men plant trees in whose shade they shall never sit."
    Your plan embodies that ancient proverb to perfection, Ed.
    Deciding to protect the land as an undivided whole—and then using its future value to fund statewide preservation in 2076—is deeply selfless and inspiring. Generations who will never know your name will benefit from the open spaces this decision protects.
    Congratulations to you and your family on finalizing such an honorable, lasting legacy.

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    1. Thank you Mr. Shife. The only fly in the ointment is if AI wipes us all out in the next 50 years and then it will be all for nothing.

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  6. What a great solution! You are leaving a legacy!

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    1. It wasn't my intention but it might work out that way perhaps.

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  7. I love that you’ve found a way to turn your family’s legacy into something that will help preserve the land for generations to come.

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    1. It will preserve not only our land, but countless more acres that they will be able to buy in the future.

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