Household farms and cattle ranches face some of the exact same estate planning challenges as any other organisation; however, there are some elements of estate planning that are distinct to the household farm or ranch. If you own a household farm or ranch, and plan to pass it to future generations, mindful estate planning is critical to prevent losing your farm or ranch to estate taxes.
The end outcome might be that the estate is subject to estate taxes, yet there are no liquid assets offered to pay the taxes, forcing the sale of estate properties. The following estate planning tools may help you transfer some of your farm or cattle ranch possessions on to future generations prior to your death which will assist avoid estate taxes.
Gifting: Taking advantage of the annual present tax exemption and lifetime exemption can help pass on the farm or cattle ranch.