Give It Away?

I'm very concerned about estate taxes. We have worked hard for what we have, and we don't just want to give it all away to the government when we die.

- Myron Friesen

We keep seeing all these articles about the estate tax laws sunsetting on Jan. 1, 2026. That's only a year away, and it doesn't sound good. What should we do?

- From K.B., via email

Solution:

This is becoming a common question as the sunset date nears, K.B. I've heard from families with estates from $2 million to $80 million, and they all seem equally concerned. Families on the higher end of that spectrum may have a legitimate problem; those on the other probably won't be affected at all.

For most farm families, fairness and distribution issues are far more concerning than estate taxes, but this is new territory. Why? We have had sunsets before, which generally have resulted in more favorable estate tax limits. This time, the potential combination of much lower estate tax limits amidst the effects of high inflation and record high asset values would hurt more farms. Here are a few things to consider: