Good/Bad News For Farming Families
Just yesterday, I blogged about the need for farmers to plan carefully to avoid family fights. Today, I see this article from Reuters:
Grain rally complicates US farmer estate planning
The article focuses on the impact of rising grain prices and the rising value of farm land. The good news is families are making more money and have more wealth. The bad news is nearly half of that wealth could be lost at death. Worse, without a plan the family will have to agree on the disposition of the family farm.
The article recognizes that even a plan completed a few years ago could be dangerously out of date today. Moreover, the death tax and inheritance laws are very likely to change. The only way to avoid the death tax and loss of the family farm is to plan well and plan ahead.
This is another reason to have a positive relationship with your estate planning attorney.
What struck me most was a daughter in law's comment that she feels uncomfortable bringing the subject up. She and her husband farm her mother in law's land. That is a recipe for disaster because if there is no plan, they could lose the farm and their income. Her family depends on the land and there is no plan for the future.
