• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Who We Are
    • About Our Firm
    • Meet Our Team
    • News and Events
    • Seniors Rock Radio
  • Estate Planning
    • Elder Law & Medicaid Planning
    • Estate Planning Services
    • Estate and Gift Tax Figures
    • Family Farm Succession Planning
    • Family-Owned Businesses & Farms
    • IRA Planning
      • Planning With An IRA
      • IRA & Retirement Planning
    • Legacy Planning Services
    • LGBTQ Estate Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
    • Young Families
  • Elder Law
    • Coping With Alzheimer’s
    • Elder Law Resources
      • Elder Law Reports
    • Guardianship & Conservatorship
    • Hospice Care
    • Veteran’s Benefits
  • Resources
    • Definitions
    • FREE Estate Planning Worksheet
    • FREE Webinars
    • Estate Administration Legal Guide
    • Estate Planning Articles
      • Questions for Your Estate Planning Attorney Before Creating Your First Estate Plan
      • How to Create Your First Estate Plan in 2022
      • How to Choose a Guardian for Your Child
      • Address These Three Questions in Your First Estate Plan
    • Estate and Gift Tax Figures
    • Frequently Asked Questions
      • Adult Guardianship
      • Alzheimer’s Care
      • Custodial Accounts for Minors
      • Estate Planning
      • FAQs for Families Without an Estate Plan
      • Elder Law
      • IRA & Retirement Planning
      • Is Your Estate Plan Outdated?
      • Legacy Planning
      • LGBTQ Estate Planning
      • Medicare and Social Security
      • Probate
      • Probate Avoidance
      • Irrevocable Trusts
      • Trust Administration
      • Trusts
      • Veterans’ Benefits
      • Wills
    • Newsletters
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
    • Top Estate Planning Techniques
  • Reviews
    • Our Reviews
    • Review Us
  • Medicaid Planning
    • Medicaid Planning
    • Emergency Medicaid & Nursing Home Planning
    • Medicaid Frequently Asked Questions
    • Medicaid Resources
  • Blog
  • Contact Us

Law Office of Michael Robinson, P.C.

Estate Planning Services in Rochester, New York and the Finger Lakes Area

Connect With Us Today

(585) 374-5210
Law Pay Button
Attend a Free Webinar
Home » Family Farm Succession Planning

Family Farm Succession Planning

When you are the owner of a family farm, you face special challenges. You must ensure that you are able to pass your farmland on. You likely want your farm to be your legacy and you want to keep your farm in the family, but doing this can be challenging because of estate tax rules and because of other logistical issues.

The Law Office of Michael Robinson, P.C. is here to help. Our legal team will work closely with you to help you understand the rules that could impact your ability to pass on your family farm. We will work closely with you to ensure that your farm is able to move to the next generation without loss and we will help you to put a plan in place to minimize all potential sources of risk during your lifetime. Give us a call to find out more about the ways in which we can help.

Why is Family Farm Succession Planning Important?

Family farm succession planning is important for several key reasons involving risks to your assets during your life as well as the potential for loss after you pass away.

Farmland is valuable. If you must obtain nursing home care or pay for long term care costs, your farm could be an asset that disqualifies you from getting Medicaid to pay for these costs. You could be forced to impoverish yourself– which could potentially include having to sell land or equipment – before you can get nursing home care paid for. Since Medicare and most private insurance won’t cover long term care or nursing home care except in very limited circumstances, there is a substantial chance you’ll need Medicaid to pay for you to go to a nursing home and will be in dire financial straits if you cannot get covered without selling farmland or equipment.

If you become incapacitated, your farm is also at risk. Someone needs to actively manage the farm and must have authority to make key decisions to keep the farm running. If you cannot act because of incapacity, it could take time for loved ones to have you declared unfit and to have a guardian appointed who can manage your affairs and take care of the farm. A period of uncertainty when there is no one with authority to control the farm could cause substantial loss.

When you pass on, there are a few key risks to your farm. One major risk is estate tax. Often, farmland becomes very valuable because the land appreciates, or goes up in value over time. This means that, on paper, land you own could be worth millions of dollars. The problem is, while your estate may be valued as being worth millions, you likely don’t actually have millions of dollars of liquid assets if you are a farmer. This could mean that your heirs or beneficiaries would essentially be forced to sell the farmland just to pay the taxes that are due because the land has become so valuable.

There is also another risk as well: the probate process takes a long time, and during this process, your farm could again suffer from not being managed by the designated new owner for a long period.

How Can You Protect Your Farmland?

To protect your farm, you should first be aware that there are special estate tax rules applicable in certain circumstances. As the Washington Post explains, there is a special use valuation that allows for your estate to be reduced by $1.1 million as long as certain conditions are met, such as the land being farmed for 10 years after death and at least one family member participating in management of the farm.  Other possible estate tax discounts also exist, including a provision of the tax code that allows the estate tax to be paid over time at very low-interest rates.

While these special estate tax rules can mean that estate tax is not as big of a threat, they don’t protect against taxes in all circumstances. You should talk with an experienced attorney to find out if you will be able to avoid estate tax after your death because of special use valuations and other rules applicable to family farmers.   If these special use valuations and other estate tax discounts apply to protect your farm, you won’t have to worry as much about making a succession plan aimed at tax avoidance. You will have to ensure, however, that your loved ones who you are passing the farm onto will be able to meet the criteria necessary for the special rules to apply.

You will still need to address other issues associated with the transfer of the farm, even if you are able to avoid estate tax. These issues, like making sure someone is able to manage the farm in case of incapacity and facilitating the timely transfer of farmland and assets after you pass on, are very important. You should make certain that you have explored options such as the use of trusts, the creation of a family limited partnership, incorporation and the use of joint ownership and pay-on-death accounts to facilitate the efficient transfer of farm assets outside of the probate process.  Exploring all of your options can make it easier for you to create a comprehensive plan to transfer your farm quickly and to avoid having to pay a substantial amount of estate tax when the transfer is made.

Getting Help from a Family Farm Succession Planning Lawyer

The Law Office of Michael Robinson, P.C. has worked with many families to facilitate the transfer of farmland while avoiding estate tax. We have also helped families to find ways to protect farmland and other valuable assets during the course of the life of the farm owner.

To find out more about the ways in which our legal team can assist you with family farm succession planning, join us for a free seminar. You can also give us a call at 585-374-5210 or contact us online to get your personalized plan started.

Primary Sidebar

Law Office of Michael Robinson, P.C.

Free Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube

TESTIMONIALS

A pleasure as always dealing with the entire staff. Always willing to explain the answers to our questions.

- Joseph and Julie Ann M.

Over the years we have been to many programs regarding Estate Planning. We were most impressed with Mr. Robinson’s presentation - both in subject matter and explanation in an understandable manner. We have put our “trust” in his competent hands. We were not aware of the complexity and the volume of paperwork generated for this undertaking. We found his staff to be most capable and client oriented in their knowledge and delivery.

- F.T. & L.T.

Our overall experience was one of thoughtfulness, clarity and comprehensiveness on the part of Michael Robinson, his staff and associates. We attended Michael’s seminar on legacy wealth, and found him to be clear and well-spoken. He touched on all aspects of Estate Planning in which we were interested. Our first of two visits to his office was timely and helpful enough for us to consider developing a plan. We finalized our document at a necessary meeting. His staff was accommodating and virtually spelled out every aspect of the plan. We highly recommended Michael and his system for developing a trust.

- Sharon T.

“From the first visit I was welcomed (like family). The office & girls have all their ducks in order! Very friendly! Mr. Robinson explained everything in detail. 100% satisfied. Will pass the word on. Great Law Firm. Thank you so much.”

- Geraldine P.

Establishing a Family Wealth Trust through the Law Office has been a positive experience, the staff is congenial, patient, thorough, professional and knowledgeable. Thank you for all your kindness. We certainly are comfortable and confident with our decision.

Beverly L.

<
>

News & Events

Seniors Rock Radio Show Recording 5-1-21

https://drive.google.com/file/d/1U7UkQbEGy-xY7XFAXvX9Qz7pKSVDVV3D/view?usp=drive_web   Read more →

Pittsford Office

1163 Pittsford-Victor Road, Suite 120 (Powder Mill Office Park)
Pittsford, NY 14534-3817
Phone: (585) 374-5210
Fax: (585) 485-0394

See Larger Map Get Directions

Map

mrobinson_sidbr_map

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
robinson law logo

The Law Office of Michael Robinson, P.C.

Attorney Advertisement


© 2022 American Academy of Estate Planning Attorneys, Inc.