The death tax is increasing in 2013, and that’s making estate planning even more difficult than before for South Dakota farming families. Now, more state farmers are having a tough time keeping their estate in their family after they pass because of the significant financial burden put on family members by the death tax.
For generation after generation, leaving the family-owned ranch to children after the passing of a loved one has been a tradition for many South Dakota farmers. But now, with the promise of a tax increase by Congress in 2013, this could no longer be a possibility.
In 2012, farmers were paying a 35 percent rate in inheritance taxes on an estate handed down to them after the passing of a loved one. With the expiration of the federal tax cuts at the end of 2012, this rate is schedule to rise almost to 50 percent. This huge boost in the tax burden will make it more difficult for South Dakota farmers to keep their ranches in the family for future generations to work on and enjoy.
State farmers in South Dakota face unique laws concerning estate planning and probate. These laws require the help and special attention from an estate planning and probate attorney in South Dakota who is knowledgeable about the challenges farmers face. With this increase in taxes for farmers, it’s become vital to have an experienced lawyer to help with estate planning. The attorneys at Swier Law Firm can explain the options available to the family after a person has passed and what can be done to help keep the farmland that has been around for generations in the hands of family members.