Farmers spend their lives investing their money, their time and the sweat of their brow into their fields and orchards. It is a cruel but all-too-common fate that in the end, when the owner passes on, the land must be sold to pay tax bills or lawyers’ fees. But good planning can and should avoid this result. A recent article in AgWeek discusses the value of estate planning for farmers:
Farmers should be able to pass their estate down to future generations, for it to be preserved, or even grown, for their heirs to enjoy. To accomplish that end, farmers need to develop an estate plan. And after developing such a plan, farmers should also regularly revisit that plan to determine if it is still suitable in terms of accomplishing the goals desired by the farmer.
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Ownership of farmland, ownership of mineral rights and ownership of other high-value property are all triggers for people to seek the advice of a good estate planner. The money spent on estate planning pales in comparison to the unnecessary tax consequences of a poorly planned or unplanned estate. Find a good estate planner and preserve the fruits of your labor.
In future posts, we will discuss specific strategies for keeping a farm together when the parents pass away. Read the entire article by Peter Welte here.
Photo by maureen.