The importance of "stepped-up" basis for South Dakota agricultural producers cannot be overemphasized. To illustrate this point, consider the following scenario.
In 2003, a farmer in Charles Mix County makes a $100,000 investment in a piece of farm land. In 2015, the farmer's property is worth $2 million. The farmer has a favorite grandson and wants to give him the property as a gift. However, the farmer also has a knowledgeable estate planning attorney whose advice is, rather than gifting the farm land now, wait until the farmer's death.