Protecting the Family Business or Farmers

Estate taxes can become a very real problem when an estate includes a farm or real estate used in a family business. Since federal estate tax have been repealed for only one year (2010), and Connecticut has recently implemented it own separate estate tax it is smart to plan now. 

For federal estate-tax purposes, land and buildings have to be valued at their “highest and best use.”  Thus, a farm that could be sold to a developer for more than it is worth, as a farm generally must be assessed at the higher fair market value. Unless the farmers family has another source of cash to pay the tax this may mean the farm will have to be sold in order to create the dollars necessary to pay Uncle Sam.

Proper planning now can help the farmer get around this problem.  If you are in this situation please call me now so we can advise you of any steps you should be taking to protect your family business or farm.