Liquidity, Cash Is King On The Farm
When looking at farm transition planning, liquidity is key. Making sure the farm can handle the buyout and the current debt load is very important. With our proprietary software, we are able to help with different buyout scenarios. For example, the next generation may not have the same advantage of their land base increasing. And for this reason, it is more important than ever to make sure the farm has liquidity to grow. Many planning tools can be used to assure that the farm has the liquidity it needs. With the price of health care, we also need to look at provisions to protect the farm from nursing home costs as well. We don’t want to have the perfect transition plan in place only to find out it was lost to the nursing home.
State Estate Tax Amounts
| State | Estate Tax | Inheritance Tax | Rates | Exemptions |
| Minnesota | $2,700,000 in 2019
$3,000,000 in 2020 and Beyond |
None | 10-16% | Farm Family’s can qualify for $2,000,000 extra exemption in 2020 under certain conditions |
| Iowa | None | Over $25,000 | 0-15% | No Tax is due on property left to surviving spouse, stepchildren, Lineal descendants or lineal ascendants. |
| Nebraska | None | County by county | 1-18% | Passing to spouse or charity are exempt from inheritance taxes |
| Illinois | $4,000,000 | None | 16% | |
| Wisconsin | None | None | ||
| North Dakota | None | None | ||
| South Dakota | None | None | ||
| Missouri | None | None | ||
| Ohio | None | None | ||
| Indiana | None | None | ||
| Kansas | None | None | ||
| California | None | None | ||
| For all other states please contact us for more information. | ||||
| Laws are subject to change please consult your tax adviser for up to date information. | ||||