Estate planning a must for future By JOYCE BUPP York Co. Reporter YORK, Pa. - Executor; probate; testate; marital deduction. Know what they mean? If you don’t, you should! Estate planning is becoming increasingly important as a long - term part of farm management. New tax laws passed in 1976 have pushed estate planning to the critical point. Save More with Stormor’s Winter “Buy for Less Sale" EZEE-DRY The revolutionary new grain condition ing system that dries up, to keep costs down. BP HJU JA “Some farmers think the new tax law did them a favor. We’re here to tell you it did not!” emphasized Phillip H. Tarpley, an estate planning specialist with Farm Family Insurance, an affiliate of the Pennsylvania Farmers’ Association. Tarpley and Joseph Larkin, an attorney specializing in farm estate planning, met with members of the York County Farmers’ Now you can buy for less. Big savings available on Stor mor's grain bins, grain conditioning systems, and the revolutionary new EZEE-DRY that dries up, to keep your costs down. See your Stormor dealer today for a FREE Winter saving estimate...prices will never be lower. Big Winter Sawings On: LOUCKS GRAIN EQUIPMENT INC. See*** Stormor, Inc. Association on February 24 at the Community Room in the York Mall. About 100 farm men and women turned out to hear the recom mendations of the specialists. Tarpley emphasized that farmers tend to feel that land is and forever shall remain theirs. However, when a land - owner dies, attorneys and the Internal Revenue Ser vice disregard the farmer’s GRAIN BINS Built better from the ground up. Rock solid anchoring, hill-and-valley bolting, heavy-gauge sidewalls. Built to last. Box 216, R.D. 12 York, PA. 17406 Phone 717-755-2690 Or Heniy Forman Box 96, R.D. i Turbotville, PA. 17772 Phone 717-649-5579 “Buy for Less Sale** Fremont, Nebraska attachment to his land as part of his life - they simply look at land in terms of taxable dollars. Through properly written estate plans and wills, a farm family can avoid paying literally thousands of dollars in the various taxes levied by the state and federal governments. By writing a will, a lan downer can choose the executor of his property, thus avoiding having it thrust into the hands of an impartial bank or attorney who may not care what eventually happens to the family farm. Guardians can be named for children, avoiding possible legal proceedings for their care and disposition. Federal estate taxes begin at 18 per cent of a net estate and can run up as high as 70 per cent of die net estate worth. Pennsylvania charges a six per cent inheritance tax, although none is levied on estate transfer to a spouse; neither are probate taxes charged on inheritances from a husband or a wife. A wife is allowed to inherit, tax free, one-half of the estate, or $250,000, whichever amount is larger. She will be taxed on the remaining inheritance valuation. When she dies, children inheriting the entire Lancaster F^ripingi.Saturday, March 5,1977 — estate left by the mother will pay taxes on the total amount, even though the mother originally paid taxes on half of the estate after the father’s death. “How do we get around that?” questioned the tax specialists. They recommend making the most use of the marital deduction, and then willing the remaining estate to the children after the father’s death. The wife will not be taxed on her marital deduction inheritance, and the children will pay the tax, only once, on the remaining amount going to them. “This could save the children up to $60,000 on a $500,000 net estate set tlement in the long run,” advised the farm tax ex perts. “By a few simple words properly set down in a will, thousands of dollars can ultimately be saved.” “What’s the best way to pass my farm on to my son?” is another key question frequently raised by farmers in estate plan ning. Estates are generally taxed on their value at the time of the father's death. However, a son will have to pay taxes on the capital gains made on the property value increases after the father’s orginal purchase. New tax legislation has written into it a section known as the “Special Valuation Provision.” Both Tarpley and Larkin question the provision as being a possible trap for land inheritors. “It’s the worst com promise Congress could have possibly come up with,” flatly stated Atty. Larkin. Under the provision, inherited land can be valued for its usage, not necessarily at its market price. However, if the land is later sold for top - dollar price, within 15 years, the IRS will recomputate the tax, based on the market price, and add the tax levy on to the selling taxes. The clincher to the provision, in the experts point of view, is that legally a mortgage cannot be taken on the land by a lending agency, because of this “floating tax lien” FUELMISER FURNACE HEAT—RECLAIMERS Recommended For Us* In Stack Temperatures Of 400 to 900*F Installation and operating instructions included. Model #ll 140 Model #l6 265 Your Security and Energy Center HIESTAND DISTRIBUTORS INC. Box 96 Marietta, PA 17547 See Us at Root's Every Tuesday Night Building #5 possibility, which prevents issuance of a clear title to the property. “Unless this is revised - and soon - the young farmer on the East Coast is done for,” warned Larkin. “The nice big bone they threw to the fanners in the Tax Reforms bill is useless.” Because partnerships, land agreements, and loosely structured family farming arrangements can change rapidly under unexpected human cir cumstances, the specialists advised “putting everything down on paper.” Such agreements should be tightly drawn, businesslike and properly written, or the Internal Revenue Service may not recognize it, if tax questions arise. “If you’re getting ready to set up estate arrangement s,” suggests Larkin, “Go to your attorney and tell him you’ve just died and that you want to know how much in taxes you’re going to have to pay. The two experts recom mended seeking knowledgeable specialists to set up farm estate plans, because many legal con sultants just aren’t fully advised on the unique farm inheritance problems. They both agreed that it is critical to the future well - being of a farmer’s family that he set up an individualized plan now - while he is still able. “They’ll get you, sooner or later. In estate planning, we try to make it as late as possible,” concluded Larkin. • CONSERVE ENERGY AND SAVE MONEY - • COMPLETELY AUTOMATIC - EASY TO INSTALL • HEAT BASEMENT, GAME ROOM, GARASE, OR ROOM OF YOUR CHOICE • FORCED HOTAIR SYSTEMS BECOME MORE EFFICIENT • HOT WATER SYSTEMS - SUPPLEMENT WITH RECLAIMED HOT AIR HEAT When ordering State Flue Size Of Vour Exhaust Stack. Blower Size BTU/H with 800* Stack 140 CFM 16000 265 CFM 24000 Rhone 717-426-3216 Dealer Inquiries Invited 117 Flue Sizes 5 to 6 to 10”
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