Succession Planning
Transitioning a business from one generation to another is complicated. Add the complexity of being family owned and operated, and you have an entirely different set of challenges.
Estate planning laws aren’t different for farmers versus others; however, there are variances, such as vocabulary, emotional ties to land, operation versus land, own versus rent, personal financial statement and deeds.
There’s a major misconception when it comes to transitioning the farm. John Phipps kicks off a multi-part series about planning for the next generation in farming on U.S. Farm Report.
Up to $12.06 million can be passed to your loved ones upon death, exempt from federal estate tax. While living, you can also gift $16,000 annually to as many individuals as you’d like. Of course, some exceptions apply.
A Spousal Lifetime Access Trust (SLAT) may make sense for gifting in 2021. We go over the details.
Married and on the farm? If one spouse dies, make sure the surviving spouse works with an adviser to file IRS Form 706 to benefit from any unused federal gift or estate tax exemption. You could save millions.
Even though the transfer tax might not happen, it is likely we will see major changes in gift taxes.
Virtually all farm estate outcomes will compromise fairness and farm continuity, perhaps settling for equal dissatisfaction. John Phipps explains why.
Nebraska’s Maggie Holub is the winner of the 2018 Tomorrow’s Top Producer Horizon Award, which recognizes an outstanding farmer 35 and under and is sponsored by DuPont Pioneer.
Succession planning is difficult and time-consuming, but it is also a key step for a business that can grow into the future. Regardless of where you are in the process, you can always take another step.