One of the most common problems for the typical family farm or ranch is coming up with cash to pay estate taxes. Most of these family businesses are cash poor because nearly all the worth is invested in land, equipment, livestock and structures. If heirs cannot come up with the cash to cover estate taxes and other fees, they may have no other course of action but to sell the land or equipment just to pay the taxes, thus crippling the business.
While the above scenario is all too common, with less than 70% of family businesses surviving the transfer from one generation to the next, a solid estate planning solution can better protect your assets from estate taxes by giving you more control over which assets pass to your heirs, as well as more control over exactly how your estate among your heirs.
With all the special considerations that farmers and ranchers face when it comes to estate planning, it cant hurt to get a head start by educating yourself about the unique opportunities and challenges of estate planning that these family businesses face. Or if youre ready to get started planning for the safe transfer of your family business, contact us for more information.
There are many invaluable resources on this site and elsewhere on the internet that can help educate you on estate planning with specific focus on areas of importance to ranchers and farmers, but we think the simplest way to get the answers and guidance youre looking for is to contact us directly either through our contact form or calling us at . As professional estate planning attorneys with many years experience dealing with farming and ranching families, we have the knowhow to navigate even the most challenging estate questions. Give us a call at (563) 445-7400!