Family farms and cattle ranches face a few of the same estate planning barriers as any other service; nevertheless, there are some aspects of estate planning that are special to the household farm or cattle ranch. If you own a household farm or ranch, and plan to pass it to future generations, mindful estate planning is critical to avoid 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 properties offered to pay the taxes, requiring the sale of estate possessions. The following estate planning tools might help you transfer some of your farm or ranch possessions on to future generations prior to your death which will help 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.