NASHVILLE, Tenn. (RFD-TV) — One of the biggest threats to farm succession is the federal estate, or “death,” tax. Without recent changes, many family operations — like renowned California rancher Kevin Kester’s Bear Valley Ranch — would have faced significant tax burdens when passing land and equipment to the next generation.
The “One Big Beautiful Bill” Act, which passed in July, permanently increased the unified credit to $15 million per individual beginning in 2026, indexed to inflation. That compares with approximately $7 million under the prior law, a level that could have compelled many farm families to sell assets to pay their tax bills.
National Agricultural Law Center senior staff attorney Rusty Rumley says the higher credit and portability provisions for married couples mean most farms will avoid immediate estate tax exposure. Still, he warns that succession planning remains a larger concern. Sudden illness or death of a farm operator can leave successors unprepared, and a lack of planning can fracture families or force financial hardship.
Tony’s Farm-Level Takeaway: Estate tax relief reduces pressure, but succession planning remains the critical challenge for farm families.
Right-to-Farm Law Inapplicable when Farming Operation Not in Compliance with State Law – All of It
August 28, 2024 12:02 PM
·
Agricultural law and taxation expert Roger McEowen discusses issues facing farmers and ranchers, like self-defense, Good Samaritan laws, preparing for the exit, and cleaning out fencerows.
August 27, 2024 09:07 AM
·
When you work on your estate plan, RFD-TV’s farm legal and tax expert Roger McEowen recommends preparing a vital list of information for whoever will need it.
August 16, 2024 01:31 PM
·
In today’s Firm to Farm blog post, RFD-TV ag law expert Roger McEowen briefly examines several of the issues that farmers and ranchers face.
August 08, 2024 12:24 PM
·
When it comes to agricultural law and tax, educating yourself about potential issues and seeking legal and tax counsel is crucial for any agriculture business.
RFD-TV News contributor Roger McOwen covers important topics in ag law and taxation, including FBAR, Read Before Signing, Reporting 4-H Income, and Attorney-Client Privilege.
