Estate planning can be a complex task. There are many variables in the way a family farm can be passed down. Listed are several of the general options available:
TRUSTS
A form of property ownership in which one person holds and manages property for the benefit of others. Benefits include unifying the management of assets in one plan, having professional management of assets, avoidance of probate, tax planning, insulating assets from creditors, planning for incompetency and privacy.
GIFTING
Subject to federal gift tax unless gifted at less than $600,000 per year to any one person. Benefit is complete avoidance of tax if gifted over long
period of time.
WILLING
Subject to estate tax. Estates are eligible for some tax exclusions on a case-by-case basis. Sometimes only choice if long-term planning is not done.
Other options are available and can be discussed with an attorney dealing in estate planning or an accountant.