Estate planning on your farm is critical.
It is important to stay up to date on the constantly changing laws and regulations that can dramatically impact your plans.
A change coming soon with major consequences for farm country is a potential reduction in the exclusion limits allowed for what is known as the “death tax”.
According to CPA Britney Tempel, “Right now in 2024, you can have an individual lifetime limit that’s about $13.6 million. So what that means is if I am an individual, I have the ability to pass away with $13.6 million worth of assets or less, and I can either choose to give away some of those during my lifetime or at death. But as long as what I own is less than that, I don’t have to worry about an estate tax, right? My family can do the normal process of figuring out where my assets go, but they do not have to worry about paying taxes on that. So, that’s going to sunset and right now the question is what limit do we go back to? And, that’s not yet defined, but the industry is kind of projecting that it’ll fall somewhere between $6 and $7 million. So, we’re roughly going to lose half of that exclusion.”
The fate of the new exclusion limit after 2025 will rest in the hands of the next President and Congress.
