Gifting parcel of land between 3 siblings, land folio question

[Brenno123]

hello all and i hope someone can offer some guidance.

we are in the process of transferring the family land from my father to us (3 children). there are 61.5 acres of agricultural land.
Working it all out we worked out and agreed on a percentage split that avoids gift tax. the percentage split is 47% sibling 1, 33% sibling 2 and 20% sibling 3.

We plan to just put our 3 names on the entire folio of land in the percentages described above.

However, if at a time in the future, the 47% shareholder wants to keep his percentage of the land, can we carve their 47% out then relatively easily and the rest falls to the other 2 shareholders without CGT or stamp duty implications?.i.e can the carving of a folio be postponed to a later date in effect without any implications? or will the minority shareholders be deemed to have made a sale of their portion of the land retained by the majority shareholder, and vice versa will the majority shareholder be deemed to have made a sale of his portion of the land that was disposed off outside the family?

Or would it be better to pin down the carvings now and get them carved out. We can pretty much get near the percentages outlined above with carving now that would pretty much suit everyone with about a 4k gift tax bill.

ps it is the 47% sibling that has expressed an interest in "possibly" keeping his share long term.

hope this makes sense!

 

[rob oyle]

Absolutely better to determine and assign the plots now, rather than expecting to do so at a later point. What would be the reason for not doing that now?

 

[Brenno123]

Thanks Rob.
Main reasons we didn't want to do it now;

To give us all control of the land. Basically 2 of the siblings are certain we want to sell up when our father dies. the other sibling "possibly" wants to keep his share. We felt having our names on all of it meant the sibling with a "possible" retaining interest could not hold back a land sale or dictate which fields he wants etc. We felt a potential buyer may want all the land, some of it etc and if we split it now it may jeopardise a best price in the future. If we split it now the minority shareholders lose control of the 47% bit totally whereas if our names are on everything we all keep control.

On reflection now and seeing how complicated it gets the 2 minority shareholders are starting to feel it wud b best to give the majority their carvings now and the line will b drawn under it then.

Our concern was a potential land buyer might want to buy the full 61.5acres and splitting might jeopardise a good per acre sale price.but having read some comprehensive land reports it is actually smaller land plots that tend to achieve a better per acre price so maybe our concerns were unfounded.

Thanks again