Much of farmers’ net worth is tied up in assets that are needed to run the business, most notably land and equipment. And according to Texas A&M, cropland values have more than tripled since 1997.
As a result, if farmers don’t organize their estate plans carefully, hefty tax bills at an owner’s death could make it hard for the next generation to keep the farm.
The rules for the estate tax have changed over the years. Current parameters were set by the 2017 Tax Cuts and Jobs Act, and they’re pretty generous.
An individual’s first $11.7 million in assets ($23.4 million per couple) is exempt from the estate tax.
These numbers are indexed to inflation, but they are set to expire in 2025. They will reset to lower levels unless
