Bill Seeks to Amend Estate Tax Code to Benefit Farms and Ranches

10:27 pm Asset Protection, Estate Planning, Real Estate

ranch e1323296693631 Bill Seeks to Amend Estate Tax Code to Benefit Farms and RanchesA bipartisan bill to amend the estate tax code in order to keep American farms and ranches intact has been introduced in Congress by U.S. Senator Mark Udall (D-Colorado).

Currently, 40 percent of the value of land used for conservation purposes can be exempt from estate taxes, with a cap of $500,000.  The proposed American Family Farm and Ranchland Protection Act seeks to raise that cap to $5 million, as well as increase the exclusion to 50 percent of the total value of land.

Udall said the purpose of the new legislation is to help American farm and ranch families avoid the pressure of having to sell, divide or develop their land when bequeathing it to the next generation, and to encourage more “robust conservation of our open spaces.”

The bill was first introduced in July of 2010, but died in committee, so had to be reintroduced.  It is being co-sponsored by Senators Mike Crapo (R-Idaho), Michael Bennett (D-Colo.), Al Franken (D-Minn.), Amy Klobuchar (D-Minn.), Benjamin Cardin (D-Md.) and Sheldon Whitehouse (D-R.I.).

The legislation is supported by the American Farm Bureau, U.S. Cattlemens Association, Defenders of Wildlife, Land Trust Alliance and the Nature Conservancy.

Help is available to you by contacting your Southern California financial planning experts today.

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