Farmers Legal Assistance Network

To visit the main page of the Farmers Legal Assistance Network, go to:  farmlawhelp.com



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Traditional Method of Farm Succession Planning is Broken…. Here is How to Fix it.

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                                Part I-Reasons Plans Do Not Get Established.  (Authors’ Note :   This will be a several part series discussing why the current method of farm estate and succession planning is not working.   In this first part, we will discuss the current state of farm succession and estate planning and compare to where it was ten years ago)         After several years of the farm economy in the doldrums, that past 2 years have seen a reassurance leading to record land and machinery prices, as well as just about everything else. Prior to this, many farms were not even sure they would survive long enough to need a succession plan.   Now, we’ve returned to where we were around 2009, 2010, and 2011, when the size of farm estates grew greatly and made it very difficult, if not impossible, for farming heirs to buy out non farming heirs due to the large capital outlay.   With land and machinery at all times highs, the difficulty is even now more profound.              The
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PREPARING YOUR FARM FOR TAX DOOMSDAY

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                                    It has begun.   Nervous clients, including farmers and others, have started calling with growing concern   about what can only be described as nightmarish changes to federal tax laws.   Changes being discussed are a extreme reduction of the current federal estate/gift tax exemption, elimination of step up in basis, elimination of Section 1031 like-kind-exchanges, as well as other drastic changes being proposed by the new administration.   Before delving into the subject matter in more detail, people should remember the immortal words of Yogi Berra when he said, “it’s like déjà vu all over again”, and look back on December 31, 2012.   When the clock was to strike midnight, we were not going to see Cinderella’s carriage turn back into a pumpkin, but the federal gift and estate tax exemption was to plummet   from $5.12 million per person all the way to $1 million   per person.   Prior to that, taxpayers had enjoyed the ability to pass up to $5.12 mill
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LLC's Can Save Farms

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  4 types of LLCs that can benefit farm operations TAGS:  RISK MANAGEMENT   FARM SUCCESSION   FARM OPERATIONS Tom J. Bechman LIMIT LIABILITY: Especially farms that operate semitrucks, even to haul their own grain, may want to consider separate LLCs for liability reasons, says lawyer John Schwarz II. If you don’t already operate your farm business through limited liability companies, see if one or more of these would work for you. Darrell Boone  | May 07, 2020 John Schwarz II, Royal Center, Ind., is a practicing lawyer and a farmer. He strongly believes in limited liability companies as a great way to structure your farm business. An LLC limits personal liabilities and provides other benefits. So why don’t more farmers use them? “The main reason is fear,” Schwarz says. “People fear things that sound complicated, and if you want to see farmers head for the door, just mention the dreaded words ‘more paperwork.’” Related:   Get your farm ready to 'play defense' But Schwarz says set
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