Having the family farm can be a tricky matter. Most heirs want their share, so how do you turn over the farm to one heir and still have something for the others?

Financial advisers Joshua Koch and Susan Lovejoy of Thrivent Financial in Lehighton have some general tips."It's all about communication from the start," Koch said.The financial advisers broke it down into four main considerations: security, transition strategy, liquidity and happy holidays. Once all is said and done, everyone wants holidays and gatherings to remain happy.Inheritance taxes, probate, administrative costs and other expenses can significantly reduce the amount of the estate, Koch said.Lovejoy said people need to consider how they are going to pay creditors and how much they might need for long-term care for their father or mother. Nursing homes can cost anywhere between $8,000 and $12,000 per month."It can affect what is left for the heirs," she said.In order to secure these assets, a farm owner needs to create a transition strategy, so the farm ownership can move smoothly within the family.There are three basic ways to distribute the land: sell it, gift it or will it, and a variety of ways to do all three."You are allowed to gift a certain amount without incurring any tax, but there is a lifetime maximum," Lovejoy said.If all of the heirs want to own the farm, then the owner can equally split it, giving each the same percentage, she said. Most of the time, one or two heirs want the farm and the others don't, but they still want their share of the property value.The property can be divided equitably, she said. In this case, one heir gains the farm and the remaining heirs receive money from the deceased person's stocks, bonds, certificates of deposit, life insurance policy, etc. These funds may equal the share the remaining heirs would have received if the farm was sold outright and the money split among them."Life insurance helps to make it equitable," Lovejoy said. "It can give you the cash to give to the other heirs when one child buys the farm."She said that no matter what the will states, a life insurance policy takes precedence over a will."Beneficiaries on a policy will override a will, so keep the beneficiaries up to date," Lovejoy said."Life insurance is technically a legal contract," Koch said. "The will covers everything not covered by insurance."Currently, life insurance benefits pass outside of probate and are exempt from state and federal inheritance taxes. The state inheritance tax is 4.5 percent for the deceased person's children, Lovejoy said. The inheritance tax is 12 percent for siblings and 15 percent for nonchildren heirs, except charitable organizations, exempt institutions and government entities exempt from taxes. Legal fees are usually 1.5 percent, although it is negotiable, Koch added. As far as federal inheritance tax, there isn't any for estates below $5.43 million, he said.Lovejoy and Koch strongly recommended compiling a team of estate experts that includes an accountant or tax adviser, attorney and financial associate. There are many ways to transfer the property including simple wills, tax-wise wills and trusts, buy-sell agreements and creating family partnerships. A family partnership involves transferring business income to the children or creating a limited liability corporation.Jake Arner, a local organic farmer who attended the workshop, highly recommended placing farm ownership into a limited liability corporation. He said these properties pass outside of probate and transitioning from one owner to another is just a matter of legally changing the names on the incorporation."Nothing creates fights in families more than money," Arner said. "An understanding without it in writing is no understanding."Kelly Hook attended the workshop with her mother, Kathy Wentz, so they could get some advice about transferring the farm to her and have something for her brother. They thought about putting the property in a trust, but found out they would have to pay an accountant manage it. "If you can get your parents to (make property decisions), do it sooner than later," she said. There are time limitations involving transferring property and paying for nursing home care.Ultimately, they decided to place Hook's name on the deed with her mother and create a lifetime estate. This means her mother owns the property for as long as she lives and pays the property tax, but the future of the property is decided.