Household farms and ranches face a few of the exact same estate planning obstacles as any other company; however, there are some elements of estate planning that are special to the household farm or ranch. If you own a household farm or ranch, and plan to pass it to future generations, cautious estate planning is vital to prevent losing your farm or ranch to estate taxes.
The end outcome might be that the estate is subject to estate taxes, yet there are no liquid possessions available to pay the taxes, requiring the sale of estate possessions. The list below estate planning tools may assist you transfer some of your farm or ranch possessions on to future generations prior to your death which will assist avoid estate taxes.
Gifting: Taking advantage of the annual gift tax exemption and life time exclusion can assist pass on the farm or cattle ranch.