Family farms and cattle ranches face some of the very same estate planning barriers as any other service; nevertheless, there are some elements of estate planning that are distinct to the family farm or ranch. If you own a family farm or ranch, and plan to pass it down to future generations, careful estate planning is important to avoid losing your farm or cattle ranch to estate taxes.
The end outcome might be that the estate is subject to estate taxes, yet there are no liquid assets available to pay the taxes, requiring the sale of estate assets. The list below estate planning tools may assist you transfer some of your farm or ranch possessions on to future generations prior to your death which will help prevent estate taxes.
Gifting: Taking advantage of the yearly gift tax exemption and life time exemption can assist pass on the farm or cattle ranch.