For many in Illinois, the farm isn’t just property; it’s personal. Passed down over generations, these farms hold stories, sacrifice, and sweat. But with rising land values and low liquidity, an unexpected illness or passing can force a sale or cause costly family conflict.
Without a plan, what you’ve built could slip away.
Two Tools That Make a Difference: Trusts and LLCs
Trusts Help You Stay in Control
A trust can manage farm assets and transfer them without probate, keeping the process private and efficient.
- Revocable Trusts let you decide how and when heirs receive their share—ideal if not all heirs farm.
- Irrevocable Trusts can help protect the land from creditor claims or remarriage risks while offering income to a surviving spouse.
- Bypass Trusts for couples can double estate tax exemptions, helping avoid land sales just to pay taxes.
LLCs Keep Ownership in the Family
Holding the farm through a limited liability company makes shared ownership smoother and protects your personal assets.
- Ownership stays within the family with clearly defined rules.
- Shares can be transferred gradually, without dividing the land.
- LLC interests may receive valuation discounts, potentially reducing estate tax exposure.
Why Combine Them?
Together, a trust and LLC can offer privacy, flexibility, and strong protection. For example, placing the farm in an LLC and assigning that ownership to a trust helps keep the land whole, the taxes lower, and the family plan on track.
Woods & Bates, P.C. – Supporting Illinois Farm Families
At Woods & Bates, P.C., we work closely with farm families across Illinois to build plans that protect what matters most. Whether you’re updating documents or just want to talk through your options, we’re here to help; virtually or in person. Call us at 217-735-1234. Let’s help your farm stay in the family; where it belongs.