The Proposed Transfer Tax can actually eliminate net equity for many farm families and cause their heirs to be underwater. It can be much worse than the current or proposed estate tax for most farmers.
Section 2032A allows the estate to pay less estate tax but will force heirs to pay more capital gains tax in the future. It effectively eliminates step-up in basis on inherited farmland if used.
With possible increases in estate and gift taxes looming, the use of an Intentionally Defective Grantor Trust (IDGT) may be appropriate to use in 2021.
A new lawsuit in California is asking the question if county government can force producers to keep farming in order to keep your own land. The Pacific Legal Foundation is stepping in to defend Willie Benedetti, owner o
