Transitioning the farm business
Preparing to transfer the farm business
Farm business transfer strategies
Transferring the farm business from one generation to the next can take several years. What are the strategies for farm business transfer?
Preparing to meet with your transition and estate planning team
Step one is to focus only on completing your prioritized list of goals for your business in addition to your goals for your family, yourself and your retirement. Step two is to call the attorney and make an appointment. Learn about beginning the process and view an example goals list.
Using partnerships and corporations to transfer farm assets
You can do away with the need to transfer separate, individual assets by establishing a business entity. Learn about types of partnerships and corporations.
Transferring machinery and livestock
At retirement, most farmers are faced with how to best dispose of their assets. The easiest assets to dispose of are the crops on hand and market livestock. They can simply be hauled to market and sold. The major concern here involves the issue of self-employment tax and income taxes. Read more about transferring machinery and livestock.
Gifting farm assets
Gifting can be used to reduce a taxable estate, transfer income tax obligations to the children who may be in a lower tax bracket, and get the next generation established. Learn about gifting of farm assets.
Should you sell your real estate?
Real estate assets may consist of land, buildings and a house. Many farmers choose to retain ownership of most of their land into retirement. Should you sell your real estate?
Tax considerations when transferring assets
The transition process must be well thought out and implemented carefully, given the potential financial consequences to all involved. Learn about tax implications when transferring assets.
Estate planning is an ongoing process. As laws change and as life situations change, reviewing your estate plan is crucial.
Estate planning can be a simple or complex process depending upon the size and composition of your estate, your family situation and your business situation. Learn about the basic estate plans that most people follow.
Some of the most costly mistakes in estate planning occur when tax aspects are ignored. Learn about the major income tax provisions to examine as you plan your estate. Learn more about tax issues for estate planning.
Life insurance can provide needed funds for survivors upon the death of the insured. Continue to evaluate your life insurance as family, estate and business needs change throughout your lifetime. Learn about the types of life insurance and other considerations.
Homestead classification is only one of many issues that need to be addressed when developing and implementing a farm business transition and associated personal estate plan. Learn about maintaining farm land homestead classification and qualification for Minnesota qualified small business property qualified farm property exclusion.