Three Reasons To Consider Estate Planning For The Family Farm

AGRILEGACY

CLINTON, MISSOURI

Farmers take care of the land. They grow crops, tend livestock, and work long hours. Yet many farmers are not fully aware of how estate planning can benefit them when it comes time to pass the family farm on to the next generation.

What are three key reasons to consider estate planning for the family farm?

1. Federal estate taxes and rising land values
Federal estate taxes may be owed when an inheritance exceeds the applicable exemption amount, which can change over time. Farmland often appreciates significantly in value, and if a farmer has not had the property appraised recently, its true worth may come as a surprise. Without proper planning, heirs could face a substantial tax burden and be forced to sell land to pay it.

2. Fairness among children does not always mean equality
A farmer with two or more children may want to divide the estate equally. While this may seem fair, complications can arise if only one child wants to operate the farm. Will the other children have a say in management decisions? Are they entitled to income from the farm? Without a clear plan, these questions can lead to conflict and threaten the farm’s future.

3. Risks of transferring the farm outright
Transferring the farm directly to a child may seem like a simple solution, but it can create problems down the road. What happens if that child files for bankruptcy and creditors come after the property? Or if the child later divorces – could an ex-spouse claim an interest in the farm? Proper estate planning can help protect the land from these risks.

These are just three of the many situations that make estate planning vital for family farms. If you are ready to plan for your farm’s future, contact us. We are AgriLegacy, and we keep family farms in the family. 877-AGRILEGACY (247-4534 )www.agrilegacy.com.

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AGRILEGACY