Estate planning is not always as easy as looking at a pie, as it were, cutting up slices, and arranging for their eventual distribution. Different circumstances can call for some very specialized planning techniques, especially when it comes to those with farm and ranch interests. This is why it is so very important to engage the services of a licensed and experienced Oklahoma City estate planning lawyer as you make preparations for the future.
With the above having been stated, farmers and ranchers can face very different challenges than those who are not in possession of large, valuable pieces of land.
Some people who own businesses such as these would consider themselves to be “land rich but cash poor.” Given the realities of the federal estate tax careful planning may be necessary to keep the farm or ranch in the family if that is what you would like to do.
The value of real estate is considered to be part of your taxable estate. Right now the estate tax exemption is $5.12 million, and the rate is 35%. So the value of your assets that exceed $5.12 million would be taxable at this 35% maximum rate.
Next year, things get even worse for farmers and ranchers because the estate tax exclusion is going down to just $1 million and the top rate is scheduled to rise to 55%.
Clearly, farmers and ranchers must take the implications of the estate tax very seriously. To discuss your tax efficiency options, take action right now to arrange for a consultation with a licensed and experienced Oklahoma City estate planning lawyer.
Author, President and Founding Attorney
Parman & Easterday