New Iowa law changes process for partitioning estates; goal is to help ‘save family farms’

It is too common a story line in farm country: The parents pass away, and the entire farm has to be sold to resolve inheritance disputes. In many states, when heirs can’t agree on how to split the property, one common option for a judge is to order a “partition by sale,” with the money then proportionally divided among them. 
But what if one of the family members would like to continue farming the land? “Partition by sale” doesn’t account for this desire among some heirs — a concern that led Iowa legislators to pass SF 2175 this year. “It is a bill to save family farms,” Rep. Lee Hein says of the new law, which took effect in July.Here is how the new partition process will work. First, when disagreements exist among heirs of an Iowa farm, a court-appointed “referee” will establish the value of the land. The determination of fair market value must be completed by three disinterested, knowledgeable appraisers. Each heir will then have 30 days to object to the appraisal, as well as have the chance to buy out other family members, without having to put the property up for sale.SF 2175 was passed unanimously by the Iowa House and with only one dissenting vote in the Senate.