It has never been easy being a farmer, but it seems like it gets tougher every year. Besides the constant worrying about this year’s yield and next year’s, farmers today have to worry about what will happen to the farm after they pass away. According to the United States Department of Agriculture, the younger generation is not staying on the farm to help out anymore and take over eventually. This leaves farmers in a bind over what to do with the farm in their estate plans.
Most farmers would like to see their farms stay in the family. That requires a minimum of two things that must be planned for: the estate tax and who will take over the ownership of the farm. You might be thinking that the estate tax is only for the rich and that farmers are not rich. While it’s true that farmers do not often have enough cash to qualify for the estate tax, the value of farm real estate and equipment puts many farm estates over the limit. Farmers need to plan how their estate can pay any taxes due without selling important land and equipment. Farmers also need to plan whether a family member will carry out the farming duties or just maintain ownership.
If you own a farm, talk to an estate planning attorney about what you can do to make sure that it stays in the family.We are grateful you follow us and value your comments and input. You Can Also Find Us Online:Facebook|Twitter|LinkedInThanks again.