Verbal Leases: What happens when someone dies?

By Jessica Groskopf, Nebraska Extension ag economist

At a recent farmland leasing workshop, the question was raised, "I am a landlord with a handshake lease agreement. What happens if I die?" At the time, I gave the simple answer, "The new owners of the land will be subject to the lease." Although this is technically correct, the situation is more nuanced than it appears. Depending on how the land is owned and passed on, there may be a period of uncertainty regarding who is responsible for the lease after the landowner's death.

Handshake, oral, or verbal lease agreements remain common for leas...