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Memorandum Allocating Payment of Taxes on Donated Land

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This memorandum sets forth the terms and conditions of a donation of certain farmland, whereby a donor retains the farm for the donor’s life and upon the donor’s death the farmland automatically transfers to the donee. This memorandum outlines which party will pay the taxes and costs associated with the transfer. The donor’s deed conveying a remainderman interest in all of the donor’s right, title and interest in and to the farmland to the donee should be attached as a schedule to the memorandum. This document can be modified to reflect the parties agreement regarding the transfer of land.

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									This memorandum sets forth the terms and conditions of a donation of certain farmland,
whereby a donor retains the farm for the donor’s life and upon the donor’s death the
farmland automatically transfers to the donee. This memorandum outlines which party
will pay the taxes and costs associated with the transfer. The donor’s deed conveying a
remainderman interest in all of the donor’s right, title and interest in and to the farmland
to the donee should be attached as a schedule to the memorandum. This document
can be modified to reflect the parties agreement regarding the transfer of land.
    MEMORANDUM ALLOCATING PAYMENT OF TAXES ON DONATED FARM

This memorandum (the “Memorandum”), made the _____ day of ________, 2____ [Instruction:
Insert Date], by and between _________________ [Instruction: Insert Donor Name],
_________________ [Instruction: Insert Address] (the “Donor”) and ________________
[Instruction: Insert Donee Name], _________________ [Instruction: Insert Address] (the
“Donee”) in respect of certain farmland (the “Farmland”) located in the County of
__________________ [Instruction: Insert County], State of __________________
[Instruction: Insert State], as further described in Schedule “A” attached hereto and
incorporated herein.

WHEREAS, on even date, Donor has delivered to the Donee a deed conveying to the Donee a
remainderman interest in all of the Donor's right, title, and interest in and to the Farmland (the
“Deed”), attached hereto as Schedule “B” and incorporated herein;

WHEREAS, the parties wish to enter into this Memorandum, to outline the parties respective
rights and responsibilities in connection with the Farmland and the Deed;

NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties
hereby agree as follows:

1. TRANSFER A DONATION

The Donee acknowledges that Donor’s transfer and conveyance of the remainderman interest in
the Farmland, effectuated by the Deed, is a donative contribution by the Donor to the Donee.

2. DONOR’S LIFE ESTATE

As more specifically provided in the Deed, The Donor hereby reserves the right to enjoy full and
exclusive possession of the Farmland including the right to occupy the Farmland and reside
therein and to enjoy the rents, issues, and profits of the Farmland undisturbed by the Donee, so
long as the Donor shall live.

3. COST OF TRANSFERRING PROPERTY

The [Instruction: Choose One: Donor/Donee] shall be solely responsible for all of the costs
associated with the transfer and conveyance of the Farmland to the Donee, including but not
limited to, filing fees and legal fees which may become due and payable.

4. PAYMENT OF TAXES AND MAINTENANCE DURING DONOR'S LIFE

The Donor shall be responsible for the payment of any and all property taxes or any other taxes
which may become due and payable in respect of the Farmland for the duration of the Donor’s
life. In addition, for the duration of Donor’s life, Donor agrees to obtain and maintain
satisfactory insurance on the Farmland and any building erected thereon and shall pay all
premiums associated with the obtaining and maintaining such insurance coverage on the
Farmland and shall maintain the Farmland in good condition and working order.

5. VALUE OF FARMLAND

    A. The Donor acknowledges that the Farmland has a value of ________________ Dollars
($_____________) [Instruction: Insert Amount] pursuant to the appraisal performed by
______________ [Instruction: Insert Appraiser Name] on ______________ [Instruction:
Insert Date]. A copy of said appraisal is attached hereto as Schedule “C” and incorporated
herein.

   B. The value of Donee’s remainderman interest in the Farmland, based on Internal Revenue
Service life expectancy tables, is ________________ Dollars ($_____________) [Instruction:
Insert Amount].

6. FURTHER NECESSARY DOCUMENTS

The Donee and the Donor agree that each of them shall execute all of the necessary documents,
(including, but not limited to any and all necessary IRS forms and other tax forms, whether local,
state or federally mandated) to give effect to the transfer and conveyance contemplated herein
and such other documents or instruments as may be necessary to complete the transaction
contemplated herein.

IN WITNESS WHEREOF the parties hereto have signed this Memorandum the day and year
first above written.

DONOR:


________________________________ [Instruction: sign]
By: ___________________________ [Instruction: Insert Name of Signatory]


DONEE:


________________________________ [Instruction: sign]
By: ___________________________ [Instruction: Insert Name of Signatory]

								
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