Household farms and cattle ranches deal with a few of the exact same estate planning obstacles as any other company; however, there are some elements of estate planning that are distinct to the household farm or ranch. If you own a family farm or ranch, and plan to pass it to future generations, careful estate planning is crucial to prevent losing your farm or ranch to estate taxes.
The end outcome may 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 list below estate planning tools may help you move some of your farm or ranch properties on to future generations prior to your death which will assist prevent estate taxes.
Gifting: Taking benefit of the annual gift tax exemption and life time exemption can assist pass on the farm or ranch.