1 OS—Lancaster Farming, Saturday, October 29,1977 ____ Such restrictions do not i i • • *■ apply to trusts. In addition, a ■4 Q / T 1 "W% Cl I'll Cl I trust can 1)6 more flexible xdl JUIJ.C7X S XJLIXrtXAXyXCIX and enjoy significant income and estate tax advantages. In other situations, a trust can often be used in a combination with a cor poration for maximum advantages. Capital Gains The trust is a taxable entity and will be subject to capital gains treatment on the same cost basis that applies to the original owner. But, as with oridinary in come, capital gain income can be “sprinkled” among beneficiaries to lower the overall tax. Credit (Continued from Page 102) a bank or trust company. The trustees can be family members. Management of the farm can remain in your family as long as you like. The grantor or creator of the 4-H award won by Shaub UNIVERSITY PARK - Megan Shaub, 17, 350 West Railroad Avenue, Shrewsbury, who last month was named a state winner in the gardening category of the National 4-H Awards Program recently was selected as a northeastern United States sectional winner. Megan will recieve an expense-paid trip to nations 4-H Congress in Chicago, November 27 to December 1, provided by the Chevron Chemical Company. She also will compete for awards at the national level. The daughter of Mr. and Mrs. Robert H. Shaub, Megan is a senior at the Susquehannock High School. She has been a 4-H member for nine years. A member of the York County 4-H Horticulture Club and Shrewsbury 4-H Community Club, she served as vice president, game leader, and teen leader. The sectional gardening contest winner completed projects in three units of vegetable gardening, flowers, canning and freezing, jams and Jellies, ✓ CHECK THESE FEATURES + Na-Churs product - contains N-P-K, sulphur, plus trace elements and has a pH of 6.8 to 7.2. + Trace elements can be mixed according to soil recommendations. + Neutral plant food and trace elements can all be placed in Root zone at planting time. + Ease of handling - no bags to lift. + Our program with Na-Churs liquid fertilizer will increase your profits. A customer of Na-Churs liquid fertilizer will receive at no additional cost a FREE SOIL TEST for Calcium Phos. Contact your local representative or call one of the following managers: MYRON 0. LeVAN ROY L SHERTZER Route 6, Lon| Lane Road Lancaster, PA 17603 PHONE. 717/172-7342 rr nrnnrrritiTATnfCC trust can even by one of the trustees himself, so long as he meets the relevant regulations governing his powers. Most methods of removing property from one’s estate teen leadership, and strawberries. Locally, she took part in day camp, potato judging training, demonstration day, roundup, dress revue, and exchange program. Megan also participated in the Regional 4-H Camp, Regional 4-H Teen Leaders Conference, Regional 4-H Demonstration Day, State 4- H Capital Days, State 4-H Achievement Days, Penn sylvania 4-H Leadership Congress, Farm Show, National Junior Hor ticultural Association Convention, and 1976 Commodity Marketing Symposium in Chicago. Megan was named as York County’s Outstanding 4-H Girl and won special honors in achievement, leadership, horticulture and clothing. Dairying is one of the most demanding jobs in farming. The cows have to be milked morning and night 365 days a year. There is no shutting off the cows for a couple days of vacation. Labor is hard to get for that job, and ex pensive to keep; so dairying remains largely a family enterprise. NA-CHURS LIQUID FERTILIZER WILL WORK FOR YOU Pounds Per Acre Parts Per Mißon RD2 Watsontown, PA 17777 PHONE: 717-742-1064 ORIE KINDY Box ISO Plumsteadville. PA 18949 PHONE; 215-766-1077 Gift Taxes N0 3 S 0« Water Hotdini Cap can mean gift taxes nearly as large as the estate taxes that would otherwise occur. Creating a properly established trust, however, can result in substantially lower gift taxes or even eliminating them, except for very large estates. It would be possible, for example, to avoid gift taxes on an estate as large as $1,000,000 or more, depending upon in dividual circumstances. Income Taxes A properly established trust allows you to reduce income taxes by “sprinkling” income to beneficiaries where it would be taxed at lower rates and with the possibility of greater deductions. For example, the farm house may be comletely deducted where the trustees or other employees of the trust live m it. Corporations Family trusts can be excellent alternatives to incorporation. Many states WE AT SEALSTOR... ARE BUILDING A REPUTATION NOT SITTING ON IT. Now you can SEALSTOR® feed for both your livestock and your land. The SEALSTOR Liquid Manure Control Center SMlstor offers the widest range of sizes in glass-steel liquid manure storage structures. You can start with a 10' or 15' above-ground height and later expand to a 15' or 20' height For additional strength, all ver tical seams are double-bolted. For more positive containment, more sealant is used .(Liquid Manure storage tanks 60,000 to 750,000 gallons.) Ifs your money. Send for the facts We believe you’ll select Sealstor. jSg\ Saalstor products art manufactured b} P O Box I Sand Springs Oklahoma 7< Clip am PENN DUTCH FARM SYSTEMS, INC. Box 8,2753 Creek Hill Rd. Leola, Pa. 17540 Ph: 717-656-2036 SALES MANAGER: Richard enck 717-284-2773 SALES REPRESENTATIVES: Lancaster Area CL A| R GRIFFITH 717-786-2740 Chambersburg Area JOE ROCK restrict corporate farms. By careful and close cooperation with your len der, a trust may also in crease your credit rating. One of the risks a lender ordinarily assumes is that the possible death of a farm owner may seriously in terrupt and impair the financial status of the farm or ranch. If your lender can be shown that your death would not create such a risk, your credit rating will rise accordingly. Multiple Trusts and Liability By using trusts for dif- Eastern, PA. CARLJOHNSON ferent facets of the farm or ranch, you can isolate liability and provide still further opportunities for income “sprinkling”. You might, for example, put land in one trust, expensive equipment in another, and the actual management in still another. Inflation in land values and operating costs have often combined to make the farmer and rancher “asset 1 FISHER WOOOBURNING STOVES THE FINEST WOODBURNING STOVES MONEY CAN BUY BOWMANS STOVE SHOP RD3, Napierville Rd. Ephrata, PA 17522 Ph: 717-733-4973 i**' NAME I ADDRESS j TOWN J STATE ■ No of animals I Beef Hog Acreage Inflation ZIP rich” and “cash poor”. The family trust won’t get rid of inflation, but it can soften some of its effects. Paying f" estate taxes, capital gains taxes, probate and other costs on inflated assets with limited funds is no one’s favorite activity. You can reduce these taxes and costs with- a family trust, and spend those limited funds where they are needed, for the operation of your farm and for your family’s welfare. 3 STOVE MODELS 2 FIREPLACE MODELS WRITTEN LIFETIME GUARANTEE dairy f
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