Fair vs. Equal: Why Farm Succession Isn’t One-Size-Fits-All
Equal division of farm assets—splitting everything 50/50—often creates more conflict than it resolves. True fairness in farm succession means accounting for each heir’s contribution, involvement, and future role, then building a plan that reflects those realities rather than a simple formula. Few conversations are harder to have on a family farm than succession planning. Who […]
Should You Hold Iowa Farmland in an LLC?
Quick answer: Yes, holding Iowa farmland in a Limited Liability Company (LLC) offers significant benefits, including personal liability protection, simplified estate planning, and seamless farm succession. However, Midwestern landowners must weigh these advantages against setup costs, ongoing administrative requirements, and specific Iowa tax implications before making a final decision. For Midwestern landowners planning their retirement […]
Stepped-Up Basis for Inherited Farmland: What It Is and How to Use It
If you inherit a farm (or any appreciated asset), one tax rule can save you a pile of money: the stepped-up basis. In short, your cost basis is “reset” to fair market value on the date of death—so decades of appreciation can vanish from the capital-gains equation. See the IRS rules in Publication 551 and […]