TOPEKA, KAN. (RFD NEWS) — For many farm families, passing the operation to the next generation is not only a financial decision, but also the continuation of a legacy that can come with complex legal and emotional challenges.
Roger McEowen with the Washburn University School of Law joined us on Tuesday’s Market Day Report to break down key estate planning tools used in agriculture, including the QTIP trust structure and how it can help navigate farm succession planning.
In his interview with RFD News, McEowen explained that a QTIP (Qualified Terminable Interest Property) trust is commonly used in estate planning to provide income for a surviving spouse while preserving control of how remaining assets are ultimately distributed. He noted that the structure can be especially useful in agricultural operations where land and equipment need to remain intact for future generations.
He also addressed how succession planning becomes more complicated in blended families, where balancing the needs of a surviving spouse with children from multiple relationships can create legal and emotional tension. McEowen said QTIP trusts can help clarify asset distribution and reduce conflict by clearly defining income rights and future ownership.
In addition, he discussed fairness concerns when only some children choose to remain in the farming operation, while others pursue off-farm careers. McEowen said QTIP structures, along with broader estate planning tools, can help equalize inheritances without forcing the breakup of productive farmland.
He also touched on the “productive property” requirement, noting that trustees must ensure assets generate income for the surviving spouse while maintaining compliance with legal obligations, making careful planning and professional guidance essential.
Firm to Farm: The QTIP Trust—Where Does it Fit into Farm Estate and Succession Planning?
