Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Farmers Race to Transfer Assets Before Estate Tax Increases
Author: Scarinci Hollenbeck, LLC
Date: January 23, 2013
Key Contacts
Back
Estate Tax Increase puts U.S. Farmers at Risk
Family-owned businesses and high-net worth individuals are bracing for a potential hike in federal estate taxes, but U.S. farmers are an overlooked segment that are expected to be particularly impacted by this scenario.
If lawmakers choose not to reinstate the Bush tax cuts, federal estate tax rates are expected to increase to 55 percent from its current level of 35 percent. In addition, the exemption will drop from $5 million to $1 million. The new rates coupled with rising prices for land have farmers in the Midwest concerned about whether the existing estate tax law will be extended, and some are already preparing for the worst-case scenario.
Many farmers are speeding up their succession land and quickly putting their assets into trusts or making gifts at an accelerated pace, according to agricultural news website the Capital Press.
“Some people are going to make gifts they normally wouldn’t have until later,” Kerry Arritt, an accountant in Burley, Idaho, told the news source. “It will cost their heirs a few million dollars if they wait.”
In other cases, some farmers are concerned that they may be forced to sell off significant shares of land in order to pay their taxes, according to The Associated Press. In some areas, such as Iowa, land prices have tripled in value, greatly increasing the amount of estate taxes some families will be subject to, the AP adds.
Further, analysts noted that the “big farming” industry is now simply the “farming” industry in most areas, and that many agricultural plot owners are not millionaires, but farmers who inherited small plots of land through previous generations. As a result, these landowners are most likely to be negatively impacted by the changes if they fail to succession plan now.
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Author: Robert E. Levy
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.