"You're Leaving a Mess For Your Heirs"

Summary

Podcast Summary: "You're Leaving a Mess For Your Heirs"

The Ramsey Show Highlights
Host: Ramsey Network
Release Date: May 23, 2025

---

Introduction

In the episode titled "You're Leaving a Mess For Your Heirs," Dave Ramsey addresses a listener's dilemma regarding a lucrative solar farm lease offer on their farmland. The discussion delves into the financial and emotional implications of such long-term agreements, especially when considering the well-being of one's heirs.

---

Caller’s Dilemma

A 70-year-old caller reached out to seek advice on whether to accept offers from a solar energy company intending to lease her 45-acre farmland. The company offered approximately $4 million over 40 years, locking in most of the land except for about 6 acres. The caller expressed concerns about:

• Pleasing the Company: She wanted to ensure she wasn't committing to a deal that could lead to future complications.
• Husband’s Approval: Her husband, who deeply loves the farmland but is in poor health, might not approve of leasing the land.

Notable Quote:

"He loves his farmland." (03:20) – Caller

---

Dave Ramsey’s Analysis

1. Financial Solvency of the Company Dave emphasized the importance of verifying the financial stability of the solar company. He warned that if the company goes bankrupt, the lease could be canceled, leaving the farmland owner with substantial cleanup costs.

Notable Quote:

"You've got to make sure the company is solvent... they've got 30 years worth of staying power." (01:27) – Dave Ramsey

2. Impact on Heirs Ramsey highlighted the long-term consequences of such leases on the caller's heirs. He pointed out that while the caller might benefit in the short term, her children would inherit land encumbered with a solar farm lease.

Notable Quote:

"You're leaving this mess for your heirs then." (01:25) – Dave Ramsey

3. Restriction on Land Use Accepting the lease would impose a lien on the property, restricting any future sale or use. This limitation could hinder the ability to capitalize fully on the land's current value.

Notable Quote:

"You basically can do nothing with your piece of ground. It now has a lien against it." (03:43) – Dave Ramsey

4. Technological Obsolescence of Solar Panels Dave discussed the rapid advancements in solar technology, suggesting that panels installed now might become obsolete within 20 years, leading to potential issues with disposal and maintenance.

Notable Quote:

"A 20-year-old solar panel is... [it becomes] useless." (07:04) – Dave Ramsey

5. Emotional Considerations While addressing the financial aspects, Ramsey acknowledged the emotional ties to the land. He recognized the caller’s husband's reluctance as a significant factor in the decision-making process.

Notable Quote:

"I'm sorry, that sounds cold, but... that's the way my mind works." (05:12) – Dave Ramsey

---

Dave Ramsey’s Recommendations

1. Sell a Portion of the Land Rather than entering a long-term lease, Dave advised selling a portion of the farmland to generate immediate funds for retirement. He suggested selling about 10 acres to potentially receive $1.5 million, allowing the caller to live comfortably without restricting future land use.

Notable Quote:

"I wouldn't tie up a $3 million asset for that... I would sell some of it." (04:32) – Dave Ramsey

2. Financial Planning for Retirement Ramsey recommended consulting with a real estate agent and investment broker to effectively manage the proceeds from the land sale. This approach would ensure that the caller has sufficient funds to support her retirement without burdening her heirs.

Notable Quote:

"I'm going to start talking to a real estate agent about subdividing this... create an account." (05:01) – Dave Ramsey

3. Protecting Heirs’ Interests By selling a portion of the land and securing retirement funds, the caller would prevent leaving any liabilities or encumbrances on the remaining farmland, ensuring her heirs inherit the property in its intended state.

Notable Quote:

"If you did it right, you probably could get a million and a half." (05:12) – Dave Ramsey

---

Key Insights and Takeaways

• Due Diligence: Always assess the financial health and long-term viability of any company offering significant financial deals.

• Heir Considerations: Decisions made today can have lasting impacts on future generations. It's crucial to balance immediate benefits with long-term legacy.

• Asset Liquidity: Retaining flexibility with assets ensures better financial security and adaptability to future needs or opportunities.

• Technological Risks: Investing in agreements tied to rapidly evolving technologies can lead to unforeseen challenges and reduced asset value over time.

• Emotional vs. Rational Decisions: While emotional attachments are valid, especially concerning family and land, balancing them with rational financial planning is essential for overall well-being.

---

Conclusion

In "You're Leaving a Mess For Your Heirs," Dave Ramsey offers pragmatic advice to a listener facing a critical financial decision. By advocating for selling a portion of the farmland instead of entering a long-term solar lease, Ramsey emphasizes the importance of financial independence, protecting one’s legacy, and ensuring the well-being of both the individual and their heirs. The episode underscores the need for thorough analysis and forethought in financial planning, especially when significant assets and family legacies are involved.

---

For more insightful advice on life and money, visit EveryDollar Budget and create your free budget today.

Transcript

[Dave Ramsey]

Brought to you by the EveryDollar app. Start budgeting for free today.

[Caller]

I am 70 and working a great deal, trying very hard to make it possible to retire by 80. Recently, this last year, I've had two offers from a company that would, if I followed those, they would probably make it possible for me to retire within a few years. But I feel a need to really please this company and I'm not sure how to go about that, to be real thorough and making sure I'm not going to get myself into a big pickle. Another thing is that my husband would never approve of this, but he's in very poor health and doesn't expect to live long.

[Dave Ramsey]

What are we talking about? What are we talking about?

[Caller]

This is a company that establishes solar farms across the nation and they pay a good rate of rent for your acreage and they install.

[Dave Ramsey]

And you had two different offers from the same company. Okay. And this is basically, they want to lease the land for 15 years, right?

[Caller]

For 30 to 40 years.

[Dave Ramsey]

30 to 40 years. Okay. All right. I've looked at these deals. I've had some friends that had some that were a little bit older than you. And the only question in the deal is twofold. Number one, you've got to make sure the company is solvent. And in the event of that, they're strong financially. In other words, in the event they go bankrupt, obviously this lease is canceled. And then you've got a bunch of junk on your farm that's gotta be hauled off. It's very expensive to get rid of it. And so you've gotta make sure this company's got 30 years worth of staying power. Financially, you're probably not gonna be here 30 years. I doubt I'm living to 110, but you might. But, and, but, but you're leaving this mess for your heirs then. And my friend that was in their 80s was talking to their kids about what their kids wanted to do because it really would only affect the 80 year old for a period of time. Right. And the kids would have then have the issue with the family farm having a solar farm on it. So why would your husband not do it?

[Producer]

Hey, George here. With a quick interruption, if something were to happen to you tomorrow, we would your family know where to find your life insurance policy, your will, even your Netflix password. Well, Knockbox solves that. It's a kit that organizes your financial accounts, estate plans, and everything your family would need all in one place. That way they don't have to hack into your laptop or locate some long lost thumb drive. So leave them a legacy, not a scavenger hunt with Knockbox Ramsey fans. Get the best discount [e-mail] Ramsey that's.

[Dave Ramsey]

Knockbox.Com Ramsey why would your husband not do it?

[Caller]

He loves his farmland.

[Dave Ramsey]

Okay. Just that simple. Okay. The other downside is that you basically can do nothing with your piece of ground. It now has a lien against it. I mean, you could sell it, but it's still encumbered by this lease. It's a lien on the property.

[Caller]

Yes.

[Dave Ramsey]

And so if someone. If someone wanted to buy. Buy it, they couldn't. They'd have to accept the lease as part of the equation.

[Caller]

Yes.

[Dave Ramsey]

And so that's how our. Our friend decided not to do it, because he didn't want that. He didn't want the farm tied up for the kids.

[Producer]

What is the land worth.

[Caller]

Currently? About 3 million.

[Dave Ramsey]

And how many acres are there?

[Caller]

It would be 45 acres.

[Dave Ramsey]

And how many. And what are they offering you and how much of it are they going to tie up?

[Caller]

It would be most of it all but about 6 acres. Well, it would be 45. We would be renting, but it would be about 4 million over 40 years.

[Dave Ramsey]

You know what? You're not going to like my answer, but I wouldn't tie up a $3 million asset for that and have my whole backyard full of this. I would. Instead, I would sell some of it.

[Caller]

Well, thank you for that. That has been a consideration.

[Dave Ramsey]

I would sell 10 acres and use that money to live off of.

[Caller]

Yes. And we could do that. And it's also something my husband is not eager to do.

[Dave Ramsey]

I'm sure he would not want to do either of these things, but that's emotional. And we're talking about how you're gonna eat, which is what you're worried about. You're working at 70 years old. Worried about how you're going to eat at 80.

[Caller]

Yes.

[Dave Ramsey]

Yeah. And so your husband didn't save enough money when he was young and working to provide for his wife's food. And so we're going to sell some of his land to do that. I'm sorry, that sounds cold, but, I mean, that's the way my mind works. Okay. And so, yeah, I'm going to pick out how I can carve off and make a million and a half on 10 of the 45 acres that are maybe some premium. A premium cut of the 45. Right. And you just got to decide how you're going to parcel that out in Portland, Oregon. And. And I'm going to start talking to a real estate agent about subdividing this and how I can, where I can drop a line with a surveyor and I'm going to do that to eat with. And you still get to live in the place, you still got 35 acres, which is very nice the way that he wants it. If you do it properly you get to configure which 35 it is. Right. But we've got to get enough out of the other to sit down with an investment broker and create an account. And if you did it right, you probably could get a million and a half. If the whole thing's worth three, I bet you could sell a third, a fourth of it for a million and a half. I bet you could.

[Producer]

And then you think about in the future when her heirs get it, what it's appreciated to. And now they don't have to deal with the red tape of having that.

[Dave Ramsey]

Yeah.

[Producer]

Solar lease on there.

[Dave Ramsey]

Yeah. It, the problem with again her situation and the situation I looked at was the same one was not as much the next 10 years, it was the following 20 years.

[Producer]

That's a long time.

[Dave Ramsey]

Yeah, it's a, it's a ground lease, it's a, you can do long term ground leases in commercial real estate. But this is, this is, it's not a scam, it's an actual offer. And, but you know, the one thing we do know about solar is it's technology. And I can tell you this, you know what? A 20 year old solar panel is?

[Producer]

Useless.

[Dave Ramsey]

Useless because the technology has advanced dramatically in the last 20 years. And so what you've got is, you know, you've got something the size of a tractor trailer that's doing what something that would, that the size of a car would now do. Right, right, right, right.

[Producer]

And they've got to dispose of that.

[Dave Ramsey]

And, and it's, it's, you know, it's a big old bunch of junk to haul off.

[Producer]

Holy smokes.

[Dave Ramsey]

And, and yet we bought it thinking, oh, we're going to make all this money over all these years when people are buying solar. Now you can buy solar. There's nothing wrong with buying solar. I don't have a problem with that. This is a different discussion here. This is people leasing her land and then what they do is they sell it to the local. They sell the electricity is created to the local utility.

[Producer]

Interesting.

[Dave Ramsey]

That's where they make their money back.

[Producer]

Yeah, it just didn't feel like a fair deal. 4 million over 40 years for a piece that's worth 3 million today. Felt I'd want more. At the very least, I'd want more money out of the deal.

[Dave Ramsey]

Well, you still own the ground, but you can't do anything with it.

[Producer]

That's what I'm saying. So at that point, like you said, it's kind of useless at that point, so.

[Dave Ramsey]

Yeah, exactly.

[Producer]

Good discussion.

[Dave Ramsey]

It's the lean against this. Interesting discussion. I've not had that on the air before. Create your free every dollar budget today. The simplest way to budget for your life.