Household farms and cattle ranches deal with a few of the very same estate planning challenges as any other business; nevertheless, there are some elements of estate planning that are unique to the family farm or cattle ranch. If you own a family farm or ranch, and plan to pass it down to future generations, careful estate planning is critical to avoid losing your farm or ranch to estate taxes.
A farm or cattle ranch is frequently at risk for losing properties upon the death of the owner because while the estate might in fact include important assets, such as land, it is also frequently greatly in financial obligation. Completion outcome might be that the estate undergoes estate taxes, yet there are no liquid assets offered to pay the taxes, forcing the sale of estate possessions. The following estate planning tools may help you move some of your farm or cattle ranch assets on to future generations prior to your death which will assist prevent estate taxes.
Gifting: Benefiting from the yearly gift tax exemption and lifetime exemption can assist hand down the farm or ranch. Simply make sure you understand the existing life time exclusion quantity so that you do not incur gift taxes.