Estate Planning for Farm, Ranch, or Vineyard Owners

August 21, 2009

Estate planning can be an extremely difficult, complicated process, especially when the individual or family drafting an estate plan has a family farm, ranch, or vineyard. According to experts in estate planning, there are three considerations property owners must look at when they plan their wills and instructions for their survivors after their death. These three considerations include the following:

• Whether or not to divide the agricultural land amongst survivors- an individual or family can choose to leave their wealth and property to friends, family members or other specified individuals. It can be divided up into acreage.

• Whether to qualify for special use valuation deductions- some state and federal laws allow estate tax breaks for agricultural land. Checking into the availability of these tax breaks will be a great benefit to survivors.

• Whether to make a charitable donation of a qualified conservation easement now or at death- a land donation can be used as land for outdoor recreation or education and for the public. If an individual or family chooses to make this donation during life, then they may be eligible for a significant deduction on their income taxes.