fbpx

Will the Fiscal Cliff Kill Family Farms in Virginia?

Cliff hangingFarmers worried that the tax increases that could take effect Jan. 1 have helped feed a frenzy of farmland sales this fall. The worries about possible increases in capital gains and estate taxes are adding to the normally busy time for farmland sales from Virginia to California.

With the Fiscal Cliff looming with each passing day to 2013, family farms may be the latest casualty. So, what’s the big deal? Why the flurry of family farm sales in 2012?

Some background is required to appreciate the problem. The perennial tax problem stalking family farms is that they are “illiquid assets.” The land is itself the primary asset enabling family farmers to make a living. Accordingly, when the land is sold there can be hefty taxes to pay. To make matters worse, if the death tax exemption drops to $1 million in 2013, then the heirs may be forced to sell the land just to pay the taxes.

More than a few news sources have shed light on this dilemma recently, to include the San Francisco Chronicle in an article titled “Farmland sales [are] brisk because of tax law changes.

While the reality of the Fiscal Cliff is not good for farming families, it’s also not good for anyone owning real estate or other illiquid assets.

Going forward, do you have any illiquid assets or legacies worth leaving that require protection? Take a lesson from those that have already gotten to work: this takes action and forethought.

You can learn more about this topic as well as other strategies on our website under the tab entitled:  asset protection in Williamsburg, Virginia . Be sure you also sign up for our complimentary e-newsletter so that you may be informed of all the latest issues that could affect you, your loved ones and your estate planning.

Reference: SFGate (San Francisco Chronicle) (November 25, 2012) “Farmland sales brisk because of tax law changes

Like this article?

Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on pinterest
Share on Pinterest

Leave a comment

LIKE THIS POST?

We have a LOT more where that came from!

We hate spam too. We will never share or sell your information.

Call Now ButtonCall Us Now https://jsfiddle.net/7h5246b8/

Request a free consultation

We hate spam too. We will never share or sell your information.

We've been putting together as many resources as possible so that we can continue to help:

  • If you’re a current client with a signing appointment or a prospective client with a consultation and would prefer that meeting take place in your own home, we can accomplish that with a little bit of pre-planning on our part and with the addition of a laptop, smartphone, tablet or other computer in your home to facilitate this virtual meeting. For those of you that need to sign legal documents, that too can be accomplished with the use of a webcam (FaceTime etc.), so that we can witness and electronically notarize all of your important legal documents.
  • We launched the rollout of our on-demand webinar early so that new clients and our allied professionals can view the important component parts of ‘an estate plan that works’ at their convenience.  That is available on our website.
  • Live video workshops will be produced as quickly as possible and certainly ahead of our previous schedule; we will keep you posted as these events become available. Given the ‘boutique’ nature of the firm, we rarely have more than ten people in our office including team members at any one time. During this period of ‘social distancing,’ we promise to have no more than 8 people at any time.   This allows us to comply with the Governor’s directive to limit in-person gatherings.
  • The best way to communicate with us is still by phone during regular office hours of 8:30 to 5:00, Monday through Friday, or, you can email any of our team members (that is, their first name followed by @zarembalaw.com).  We will respond to these emails as quickly as possible.
  • Please continue to follow the directives of our local, state, and federal agencies. For your health and in consideration of our team who is assisting you, if you’ve scheduled an office appointment or planned to drop off paperwork and are experiencing a fever, dry cough, or shortness of breath, please contact your primary care doctor for guidance and then our office to reschedule.

Thank you, Walt and the Zaremba Team

Coronavirus/Covid-19
Update to our Process

The unprecedented coronavirus pandemic has taken our entire country by surprise. We understand how difficult this time is for America’s businesses and families.  However, we believe it is vitally important that we make every effort possible to continue to offer solutions that avoid disrupting our important partnership with you, your family and friends.  As you know, estate planning is not something that should wait for a more convenient time, therefore the opportunity to address your important goals both during and after this crisis should not wait.  To that end, we have added the option of a ‘virtual consultation’ to our office process.  You will now have a choice of either meeting with us in our office or in the comfort of your own home.