Family Owned Farms & Ranches
What do you need to know?
Estate Planning for Farmers and Ranchers
Passing down a family owned farm, ranch or other business to the next generation can mean a lot to families. However, over 70 percent of all family businesses are not transferred successfully. Why?
A Farmers Problem
Many ranchers and farmers have a distinct and common problem: they are land rich and cash poor. A farmer may have millions of dollars tied up in farmland, machinery, buildings and livestock but have little when it comes to cash on hand. Farmers are well aware of the stress that this can cause on their families. It is a big enough problem while they are alive, but it can turn into an even bigger problem when they pass away. The state and federal estate taxes that may be due at the death of the current generation may necessitate the sale of all or a portion of the farm property. Or it may necessitate the sale of necessary equipment or live stock in order to pay the tax bill. Unfortunately, once this is done it may be hard or impossible to keep the farm running and thus, the family legacy is gone.
Estate Planning Solutions
Although there may be difficulties in passing down a ranch or farm to the next generation, proper planning can often help facilitate the transition. And once you have your estate plan in place it is important to keep it up-to-date.
Call us today at (503) 241-1215 or contact us to discuss how we can help you create a plan to pass on your family owned ranch or farm to the next generation.
Estate Planning Articles
These reports are compliments of Schneider Rasche LLC and were written by The American Academy of Estate Planning Attorneys.