Estate planning for a family farm is no small task.
Are you a farmer?
Has your land been in your family for generations?
Chances are you have experienced good and hard times.
Are you concerned about what will happen to your family farm when you die?
According to a recent article in Farm Bureau titled “Estate Tax Repeal Bills Would Help Family Farmers,” the government may be making the transfer of your farm to family easier.
Why is this important?
Farmers are less likely to invest in life insurance and estate planning.
The focus is rather on the business purchases, upgrades and expansion.
The farm is all they have.
Historically, estate taxes have been a significant issue for family farms.
When the owner dies, many have had to sell in order to pay this tax.
Farms are illiquid assets.
Farmers tend to be cash poor, but land and equipment rich.
To pay estate taxes greater than the cash on hand or their liquid assets, families must sell land or equipment to pay the tax.
Selling land and equipment significantly hurts business.
What is the law and how can it help?
The introduced law is the Death Tax Repeal Act of 2017 (H.R. 631 and S. 205).
It has been designed to help protect family farms and help American agriculture as a result.
Click over and read more about it in the original article.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Farm Bureau (January 26, 2017) “Estate Tax Repeal Bills Would Help Family Farmers”