If you own a business that you operate along with members of your family, your estate planning situation can be a bit complex. For example, let’s say that you have three children. One child has been running the business alongside you for years, and the other two have pursued different career paths. The business is your most valuable asset, and you want to take care of all of your children equally. How do you proceed under the circumstances?
There are estate planning solutions that can be implemented to balance inheritances. Life insurance purchases can be an option, and there are other steps that can be taken. The ideal way to proceed will depend upon the circumstances, and this is why personalized attention is key. When you work with our firm, this is exactly what you will receive from the first moment that you walk through our doors.
Family Farms and Estate Taxes
Estate planning for farmers can be challenging as well. Some of the same situations that any business may face can exist, but there is a particular facet that is more common among farmers.
There is a federal estate tax in place, and it carries a 40 percent maximum rate that can take a major toll on your legacy. At the time of this writing, there is an estate tax exclusion of just over $11 million. This is the amount that can be transferred before the estate tax would be applicable.
That is a rather significant figure, but many farms are sprawled out over dozens or even hundreds of acres of land. The real property may have been purchased generations ago when prices were extremely low as compared to the value of the land today. Even if the farm is not making your family members extremely wealthy, the land itself can be so valuable that your estate could be exposed to the death tax after your passing.
Fortunately, there are tax efficiency strategies that can be implemented to ease the burden and keep your farm in the family for the next generation and future generations to come. We can gain an understanding of your situation, explain your options to you, and help you execute a viable legacy preservation plan.
Let’s Get Started!
We would be glad to help if you would like to discuss your family business or farm succession goals with a licensed Wilkes-Barre, Pennsylvania estate planning attorney. To schedule a consultation, call us at 570-270-6524 or click this link to send us a message over the internet.