Farmers’ financial security queried CHICAGO - U.S. farmers own 38 per cent of the land in our country today. The future of much of that land depends on effective estate planning by the farmers. But are today’s farmers taking the necessary steps to secure the future of their farm lands? U 1 Couaon Va/ufttWr 0 _ _ f AHA Vk Take advantage of big savings now on quality John Deere snowmobile accessories Clip these coupons and come to our ioH AH ■■ ™ store See our whole line of John Deere snowmobiles and PBB A accessories and save'Limit one coupon per item purchased | C*ll#e gi A Coupon good for $lO off the regular pnce of . CKUtS Coupon good for $5 off the regular price of the ■ the partiapatine dealer to whom you present ■ MT E 99 participating dealer to whom you present the I the coupon on any John Deere 2or 3 piece adult snowmobile smt I coupon on a case of John Deere snowmobile oil | Customer Name (Please Pnnt) Dealer Name (Please Pnnt) | Customer Name (Please Pnnt) Dealer Name (Please Pnnt) I Address Branch Code No CPAcct No ■ Address Branch Code No CPAcct No I Town State/Prov Zip/Postal Code I Town State/Prov Zip/Posul Code I Cm tower Please be of lollowini conditions (I) the I j* Customer Please be advised of foliowm# cnnriiimnc ii\ ih« ■ cash value of coupon ,sj'2oth of 1 cent Q) coupon .s void .1 use ■ cishvSucof coupoS “l/ffltifol I cent S co”wn is , usf I *** an * | 'S prohibited or restricted by law (3) you will be required to pay any ■ , *ax applicable to the transaction in which you use coupon * sales (ax aoohcabie lo ihe transvtmn m ahieh »/»• ■■*<» mun^n i i « I I Furthef dealers may not have merchandise atamst wh«h this cou » fr#m John Deere bypartrcipatm# dealer Other item* may not be ■ from John Deere by parbciMliitK dealer Other items mav not be i sssssasss i ! Ecr 1 " 31 ~/7 STORECOUPON ■ CMWM Coll P on good for $2 off the regular pnce of the HueM&mpongood “ “cToTthT* I partiapating dealer to whom you present the | wHTE 99 participating dealer to whom you present the | coupon on a John Deere gasoline can itv 50271 | coupon on ajohn Deere reversible vest | Customer Name (Please Pnnt) Dealer Name (Please Pnnt) | Customer Name (Please Pnnt) Dealer Name (Please Pnnt) - Address Branch Code No CPAcct No ! Address Branch CodeNo (TpAccTNo I Town State/Prov Zip/PosUI Code | Town State/Prov Zip/PostalCodc I Custemei Please be advised ol foliowm* conditions <1) the I Ta Cmlwrwr rwse he *iv.wi of >niin«.n* mnd.iumt m fk . ■ cash value ol coupon ts 1 20th of 1 cent (2)coupon is void .1 use ■ 3sh?al!?S wuo* .V llothol 1 cSlTjuSn s w D .i n£ I sales tax' * ny I 15 Prohibited or restricted by law (J) you will be required to pay any _ ®ai®s tax apphcaoie to the transaction in which you use coupon 1 sales lax acolicabie to ihe innwimn m *hirh wm» c«s.,rw»s I Such (4* may be payable on lull value of foods and (4) you must l»ll ■ such tax may be payable on full value of foods and (41 «ou muo i.ti ■ in your name and address in places protnded below Thlscoupon.s I younSawaddfels mo «sVoi&ri I ,n l c* ,s t on behalf ol partiopatmc John Deere Dealers who ■ bem* distributed on behalf ol partiCipalma John Deere Dealers who ■ own their own stores and seMhen own retail prices Price of mer I own^theirownstores and^t I SiTvaw I ch-nd,,e < J tle,etl on colJI)on sub ' ect Io ch * n V without not.ee and I pan may be applied m stock at the time you present coupon How- I M n iSaySappS^toc^tXhm?v?u?SSml how ■ ever merchandise writ ord.nar.ly be available and can be ordered i S* r ™ rchaKfw.ll orderly beS a °£J2S ™ KaSm I from John Deere by parHopalmt dealer Other items may not be I from tohn DeelfbT partllSllne I iSSes occur te?o W deaS VmitSl C |J wol I a J'* ,laWe aI al ' ’’ sates MCwd anticipated demand or other*cucum ■ iunccs occur oeyono oearers ano jonn ueeres control Use of I stances occur t#unnH rieat*r< *aa uhn m.. < I - Qupon s y b l K l. to l vai . libll !? y nl soch Merchandise Limit one c»u ■ coupon subject lo availability ol such merchandise 1 umt one cou I pon per .lem Mr Dealer Vou are authorized to act as our aient | pet ttem Mr You are authorised in act j< mu anni I fcalcr^mJsM.lf 1 m " In' r “ emDtlon o( lh,s c » u P° n ,n accordance with the terms the wo) I iseaxjr must r.ii in name ano acrouni number rresentalron lor I Dealer m*_st liU m name anrt armuni numiwi XiMMiiiinn u. I I Withoul Such comphance constitutes fraud Th.scSupon I ano an otners jcu reoeem *or iy// John Deere Red Hct Sweep- I and all others won redeem rnr iq?j intm rwre wen wn* - L®i*snrri st ° rec ° up ° n ■ v^g,^ 3l w 7 storecoupon A. B. C. GROFF, INC. New Holland, PA 717-354-4191 According to a recent survey conducted by In ternational Harvester’s Farm Forum Magazine, 82 per cent of the farmers who responded indicated that they have wills for the execution of their property. Despite a high percentage who said they had wills, only ADAMSTOWN LANDIS BROS. EQUIPMENT INC. INC. Mohnton, RD2, PA 19540 Lancaster, PA (near Adamstown) 7i7.393.3g06 215-484-4391 36.9 per cent of the respondents had a com prehensive estate plan for their farm. “Estate planning is more than making a will,” notes J.W. Lonney, assistant professor of agricultural law, Virginia Polytechnic Instutite and State University. “The total estate planning process involves looking into property ownership, the business organization, insurance programs, as well as tax considerations.” When asked about setting up an estate plan, 35.6 per cent said they relied mostly on a will. Other farmers indicated the following for their estate plans:Set up a trust 18.5 pet. Property and assets held in joint tendancylB.o pet. Giving away money and-or property 15.5 pet. Property, assets held as tenants in common 11.6 pet. Relying mainly on life insurance payments 10.3 pet. Have formed a family corporation 9.0 pet. Formed a partnership 5.2 pet. Other 3.4 pet. Have no estate plan 14.6 pet. According to a bpok published by E.S. Publishers, 11211 Katy Freeway, Houston, Tex., the average family farm unit is worth a million dollars, based on today’s present valuations. To probate such an estate could cost as much as 15 per cent to 25 per cent or more of that value. Some ways of distributing farm assets are better than others, and one of the better ways is through an equity trust, claim authors of E.S. Publisher’s book on the subject. It is available free to farmers and ranchers. An equity trust is created by conveying assets in return for units of "beneficial interest rather than by direct gift or bequest. This beneficial interest, in turn, may be given to other beneficiaries at a later date. The equity trust, also known as a common law trust, can take several forms. Some are fairly well known - the “Mass achusetts” or business trust. Lancaster Farming, Saturday, October 29,1977 the “Illinois”-type land trusts, and such highly specialized forms as the real estate investment trust. While each varies widely in use and application, it is the family trust that will hold special interest for the family farmer or rancher, say authors of the book on equity trusts for the family farm or ranch. Following are some points to consider: Estate Taxes The 1976 Federal Tax Reform Act contains some changes that can benefit the family farm or ranch. For example, a more valuable tax credit now replaces the specific exemption. The marital deduction has been increased in effectiveness. Evaulating farm property for tax purposes has been changed to allow the farm to be evaulated as a farm rather than at a higher value for other land uses. The new law also permits a longer installment schedule for payment of estate taxes. While these changes are helpful, the family farm or ranch is still not out of the woods. Consider, for example, the effect when the surviving spouse also dies at a later date. Using the marital deduction to maximum effect, the first spouse can leave an adjusted gross estate as large as $400,000 in 1981 or after and pay no estate tax. When the surviving spouse later dies, however, his or her heirs will face an estate tax of almost $70,000. This does not include costs of probate or state inheritance tax. To make things worse, the chance to take advantage of changes in farm property evaluation and the in- DAIRYMEN! Lehigh Valley Cooperative Farmers a Pennsylvania based cooperative- Offers sound milk markets-- at Modern Milk Plants- PHONE (215) 433-5111 Send the Following: I am interested in a milk market | with Lehigh Valley Cooperative | Farmers. I Name Address I Road Phone LEHIGH VALLEY COOPERATIVE FARMERS 1000-1160 North Seventh Street Allentown, Pa. 18001 Attention: John C. York • Vice-Pres. Member Relations stallment payment plan for estate taxes depend, in part, on family members con tinuing to operate the farm without disruption. If part or all of the farm must be sold in order to meet estate taxes and expenses, the tax itself can be increased and become due immediately. Furthermore, if the farm is sold at a later date, the heirs may face high capital gains taxes, assuming that inflation will continue. The cost basis for capital gains is no longer the market value of the property at the death of the owner, but the cost of the property to the deceased or its value on January 1, 1977, if he bought it before that date. What then can you do to insure the continuation of your family farm? One ef fective alternative is to establish a family equity trust and spread the beneficial interest among family members. This can greatly reduce or even eliminate the estate taxes that would otherwise be due. Here are some other points to consider: Probate By placing your farm in a properly established trust, you can completely avoid probate on the trust assets. This not only avoids probate expense, but also some costly interruptions in farm and ranch operations as well. With no frozen bank accounts, safety deposit boxes or encumbered assets, your farm or ranch lives on. Management Contrary to folklore, putting your farm or ranch in trust does not necessarily mean giving up management of your farm to (Continued on Page 108) or 103
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