Coming into $8–12 million worth of land might sound like a dream—but let’s be honest, it can get overwhelming fast. Whether it’s farmland, forest, or city plots, the decisions ahead aren’t simple. Estate taxes, managing tenants, or deciding whether to lease, sell, or build—it’s a puzzle with real money on the line. With the federal estate tax starting at $13,990,000 in 2025, your move might also impact your tax picture. Let’s break this down into manageable next steps.
1. Pause before making any big-money moves
It’s tempting to cash out or build immediately, but don’t rush it. An inheritance like this is a once-in-a-lifetime situation. Let emotions settle—and resist pressure from people who suddenly want to “help.” Financial advisors who specialize in high-value assets can offer realistic guidance, not just big promises. It’s okay to take a breather before making any commitments.
Action step: Find a fee-only fiduciary financial planner familiar with land or real estate portfolios.
2. Confirm what you actually own
Start with the basics: get a full legal description of the property boundaries, zoning status, outstanding debts, mineral rights, and permitted land uses. You can’t make good choices if you’re unsure what those acres include. Title searches and property surveys are your new best friends.
Action step: Hire a real estate attorney to do a title review and zoning assessment ASAP.
3. Know your estate tax exposure
Here’s some good news: in 2025, the federal estate tax exclusion is $13,990,000. If the full estate (not just your share) is under that, you probably won’t owe federal estate tax. But, state-level taxes or inheritance taxes might still sneak in depending on where you live. Knowing what you’re on the hook for prevents nasty tax surprises later.
Action step: Review the estate’s total value with a CPA familiar with both federal and state estate tax rules.
4. Explore development or rental income options
If selling isn’t on the table, income might be. Could you lease the land for farming, timber, hunting, or renewable energy? If it’s urban or suburban, building rental homes could be an option. With the average new home selling for $501,000, development could bring serious returns. On the rental side, vacancies nationally are modest at 7.0%, so tenants likely aren’t hard to find.
- Raw land leasing
- Timber or mineral rights sale
- Residential rentals or development
Action step: Talk to a commercial broker or land use consultant to untangle income options.
5. Consider selling all or part of the land
Sometimes the cleanest path is a partial or full sale. Got a big mix of forest and city-adjacent lots? Maybe offload what’s hard to manage and hold onto land with upside. With new homes averaging $501,000 and median pricing at $401,800, a well-placed parcel could be in high demand.
Action step: Have your property appraised. Prioritize lots based on liquidity, income potential, and upkeep costs.
6. Plan a long-term wealth strategy
Land is a great legacy—but it needs structure. Will this go to your kids one day? What happens if you pass unexpectedly? A living trust or LLC could protect your interests and keep things simple for your heirs. Involve legal and financial pros who can help you build a smart, multi-year strategy.
Action step: Set up a meeting with an estate attorney to explore how trusts, LLCs, or partnerships fit your goals.
You don’t have to know all the answers today—but you do need a plan. This land can bless your family for generations or turn into a costly mess. Take time to get the right advice, learn what you’ve got, and map out smart next steps. You’ve been handed a big opportunity—handle it with care and confidence.
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