Like many of you, I’ve grown up loving the land here in northern Michigan – whether it’s a family farm, a cottage tucked into the woods or a stretch of waterfront that holds generations of memories. These places shape our life stories.
While we all wish these summer days would never end, our time with these special places is indeed finite. The land will outlive us all, and eventually every family must ask: How will we pass this place on – or is it time to let go?
Whether you choose to keep, sell, or re-imagine your family property, thoughtful planning and professional guidance can help ensure the decisions you make protect your legacy, preserve relationships and support your financial future.
Start with the Heart
First, I want to recognize that decisions about family land are deeply emotional. These properties hold memories, family history and priceless natural features, but they can also become burdensome.
Perhaps the maintenance is becoming overwhelming, or the carrying costs are no longer sustainable. Maybe the next generation simply isn’t interested in using the property the way you have in the past. These can be difficult truths to face, but opening up the conversation often leads to solutions that honor both the past and the future.
Understanding the Full Value of Your Land
The emotional value of your land is real, and must be considered alongside its financial implications. When assessing what your property means to your family’s future, there are several financial dimensions to consider alongside your goals:
Production value: Does the land generate income through agriculture, timber, or rental? Are there development rights that can be sold?
Tax planning value: Could gifting or donating the land, or placing a conservation easement on it, play a role in your overall financial and tax strategy?
Development potential: Would subdividing or selling part of the property better align with your financial and legacy goals than selling it in full?
Market value: If you are considering a sale, it’s essential to obtain a qualified appraisal. For most families, real estate is one of the most significant assets they own. Relying on tax assessments or family lore can lead to costly mistakes. Remember to factor in potential capital gains taxes and transaction costs as well.
If You Choose to Keep the Land
Re-affirming your multi-generational commitment to these special places can be powerful. For families who wish to keep the property, long-term stewardship requires planning, both legal and financial. You’ll want to ensure:
• The ownership structure is appropriate and up to date (individual, joint, trust, LLC, etc.).
• Your estate plan clearly reflects your wishes and prepares the next generation for their roles.
• Funds are available for ongoing maintenance, taxes and other costs.
If multiple family members will be involved, open communication is key. Who will be responsible for upkeep? How will expenses be shared? What happens if someone wants out?
These questions can be tough to navigate, especially when emotions run high. Bringing in a financial advisor, estate attorney, or neutral third party can help facilitate productive conversations.
Once you’ve confirmed these essential puzzle pieces are in place, you may want to consider whether there are other experts who could help you manage the land from a natural resources perspective. Reach out to your local conservation district to get started. You may discover a newfound passion for native plantings, small scale agriculture or find a partner to help manage a larger farm.
If You Choose to Sell the Land
Selling family land can feel like closing a chapter, but it can also mark the beginning of a new one. Done thoughtfully, a sale can offer financial freedom, reduce stress, and allow for new opportunities, such as:
• Creating education funds for children or grandchildren
• Supporting a more comfortable retirement
• Making a philanthropic gift that honors your family’s values
In some cases, partnering with a land conservancy can allow the land and your family’s legacy to be preserved while still transitioning ownership.
If you choose to sell, be sure to work with trusted professionals to manage the sale, navigate tax implications and invest the proceeds in alignment with your goals. With good planning, the proceeds from a land sale may be able to provide financial support for your family for generations; creating the financial freedom you hadn’t imagined in the past.
A New Chapter in the Legacy
What feels right today may not feel the same way 10 years from now. That’s why it’s so important to keep the conversation going – with your family, and with your financial and estate planning team.
Whether your future includes sunny days at the cottage or new adventures made possible from the sale of your real estate, your family’s story continues. Legacy isn’t just about holding on – it’s about moving forward with care, clarity, and purpose.
With open hearts and trusted advisors on your team, your legacy can continue to grow – rooted not just in the land itself, but in the thoughtful choices you make for those who come next.
Questions to Guide Family Conversations About Property
- What does this property mean to our family – emotionally, historically and financially?
- Who is currently using the property, and how might that change in the coming years?
- Are we prepared for the ongoing costs and responsibilities of maintaining this property?
- If we sell the property, what could the proceeds help us achieve?
- What structures (legal or financial) need to be in place to support our decision?
- How do we want future generations to remember and honor this legacy?
- Do we need help from professional advisors to facilitate this conversation and potential future transactions?