An inventory of your assets will be called for when you get serious about your estate planning efforts. Clearly, you want to identify what you have to pass along to your loved ones when you are devising your plan, but there is another relevant factor.
The federal estate tax can be applicable when assets are being transferred after someone dies. This tax carries a maximum rate of 40 percent, so we are talking about a very significant level of asset erosion.
Everyone does not pay the estate tax, because it is only applicable on the portion of your estate that exceeds the amount of the exclusion. In 2015, the federal estate tax exclusion is $5.45 million.
When you are evaluating your financial position relative to the federal estate tax exclusion, you have to make sure that you include everything that you own, including real property.
There are many farmers and ranchers who may not consider themselves to be extraordinarily wealthy. However, they are often in possession of large tracts of valuable land. This is the classic “land rich, cash poor” dynamic.
If you are a farmer or rancher, the value of your estate could exceed the amount of the exclusion because of the value of your land. In some cases, people have been forced to sell land that was in their families for generations to pay the estate tax.
There are tax efficiency strategies that can be implemented if you are in this type of situation. In many cases, the land can remain in the family if the right steps are taken in advance.
Get All the Facts
Our firm has prepared an in-depth report on the impact that the estate tax can have on farmers and ranchers. This report will provide you with all of the facts, and it also examines the tax efficiency strategies that can be implemented if your property is going to be in harm’s way.
The special report is being offered free of charge at the present time, and you can access your copy with a couple of mouse clicks. To get your copy of the complimentary report, click this link and follow the simple instructions: Estate Planning for Farmers and Ranchers.
We Are Here to Help
If you are a landowner who has concerns about the federal estate tax, you are not alone. Here in America’s heartland there are many families who work their land to make a living. The financial implications are huge, but there are also family legacies to preserve.
Our firm can help if you would like to discuss this matter with a licensed professional. We offer no obligation consultations to farmers and ranchers, and you can send us a message through this page to set up an appointment: Indianapolis IN Estate Planning Attorneys.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
Latest posts by Paul A. Kraft, Estate Planning Attorney (see all)
- If a Beneficiary Dies During Probate What Happens to the Inheritance? - September 18, 2019
- Is Your Power of Attorney Powerless? What to Do When a Third Party Won’t Honor an Agent’s Authority - September 11, 2019
- Are There Different Types of Special Needs Trusts? - September 4, 2019