A good estate plan is especially crucial if you’re a farmer or rancher. As a agricultural producer, not only do you need to consider protecting your estate, but you also need to ensure your operation is protected, both before and after your death.
Here are four objectives every agricultural producer needs to know about estate planning:
Objective #1 - Tax Planning
Tax planning helps to minimize estate or inheritance taxes paid out at the time of your death.
Objective #2 - Asset Protection
Asset protection is important to protect everything that you have worked so hard to obtain.
Objective #3 - Proper Distribution of Assets
Proper asset distribution ensures that your assets are distributed according to your wishes at the time of your death.
Objective #4 - Understanding Your Estate Plan
An estate plan sets forth the wishes that you create based on what you want to happen after you die or become incapacitated. The basic components include:
- Choosing and naming beneficiaries
- Appointing individuals to control assets
- Naming guardians for minor children