A lot of people who own farms and ranches work hard to make a good living. However, they may not earn so much as to be considered wealthy by any stretch of the imagination. As a result, their savings may be relatively modest and fall well short of the estate tax exclusion amount.
However, the land upon which they run their businesses may in fact be very valuable and exceed the amount of the estate tax exclusion. For this reason it can be difficult for farmers and ranchers to keep the property in the family unless they are very proactive about planning ahead intelligently.
There are steps that can be taken to position your resources wisely as a farmer or rancher. One thing that is quite commonly done would be to utilize the Special Land Use Valuation Section 2032(a) provision of the IRS code to reduce the taxable value of the land in question.
When you are a farmer or rancher you have a unique set of circumstances that you must deal with when you are making preparations for the future. Everyone should tap into expert advice when they are making estate plans, but it is especially important for people who are “land rich and cash poor” as it were.
If you are a farmer or rancher looking for a way to keep the business in the family, simply take a moment to arrange for an informative consultation with an experienced, savvy South Carolina estate planning lawyer. Your attorney will gain an understanding of your wishes, evaluate your situation, and devise a plan that is tailor-made for you and your family.