estate planning checklist for farm families

Some farm and timber heirs are land rich and cash poor, making the estate tax settlement particularly challenging. Large-scale family farmland succession involves legal, business and tax issues, as well as personal issues such as death, control and money, all of which should be treated with care. The timeline of farm transfer should be driven by the scope of the farm, the type of farm assets such as land, timber, equipment and livestock, and the personal goals of the each generation, including parity for non-farming heirs. The over-arching goal is to avoid breaking up the farm upon the death of the older generation in order to pay estate taxes. Below is a brief list of key issues to consider in order to successfully transfer farm businesses, farmland and timberland interests with the goal of keeping these generational assets within the family. There is no cookie cutter approach for estate planning, particularly for farms and farm assets, and typically farm transitions are a lengthy and complicated process. Family-owned farms and associated timberland are also a tradition for many private investors, which can be used for both commercial and recreational purposes.Īs the number of heirs grows and family dynamics change, however, farm succession planning can be an extremely challenging task.

In many cases, these are one of or the dominant asset in the family. Family farms, particularly in the Southeastern and Midwestern United States, are often maintained for generations.

Estate planning checklist for farm families