For active farms and ranches, one of the most difficult issues in estate and business planning is how to go about setting values for multiple ownership situations if both on-farm heirs and off-farm heirs are involved. Our experience has been that the task can be eased if –(1) the organizational documents (articles of incorporation, bylaws and shareholder agreements for corporations and the same as to partnerships and other organizational structures) have been agreed to by the owners as to how and when the valuation is to occur; (2) the valuation process has been carried out annually without exception; and (3) the results have been agreed to by the designated group, usually those holding an equity interest
