DlG—Lancaster Farming, Saturday, December 13,1980 Estate planning could CLAYTON, Del - Your life style may not show it, but if you’re a farmer with more than 400 acres, you could well be a millionane— at least on paper. As of February 1980, the average Delaware farm was worth $2OlB an acre counting land and buildings And when it comes time to pay the inheritance taxes on your estate, every penny of that paper value gets counted “Unless you do some planting while you’re alive,’ warns University of Delaware extension farm management specialist Dr Don Tilmon, “the tax burden on your heirs could be horrendous ” He’s con cerned because he feels that a lot of heirs of Delaware farmers haven’t taken the steps needed to spare their families this potential tax drain on the estate they inherit You may have gone along working hard most of your life, trying to buy a farm, pay for it, and make a living on it Suddenly you’re worth a lot more than you ever dreamed It doesn’t matter that your estate is based largely on rising values and that you’ve never felt the fruits of this prosperity “That’s the kicker,’’ says Tilmon “If you had $650,000 in certificates of deposit, you’d be netting somewhere around $65,000 a year ” But a $650,000 farm that’s roughly what the average 325-acre farm Warranty protects everyone 501 d... A building represents a lifetime investment so, you will want it to last 1 With a Morton Building you have the assurance that it is protected with the strongest written warranty ever offered and backed by a financially sound company Morton Buildings warranty covers 40 years on posts 5 years on roof leaks, 5 years on paint and 5 years on wind or snow load damage (including sliding doors) If you want to make sure your building is as well protected as the equipment it houses, contact the nearest Morton Sales Office(listed below)today' WINTER DISCOUNTS NOW IN EFFECT 'MtmimmvmiM Serving Central PA Serving Easter n PA and Maryland and New Jersev [ RD4 Box 34A Box 126 ' ~ ’ Gettysburg, PA 17325 Phillipsburg NJ 08865 [ t Ph 717 334 2168 Ph 201 454 7900 < Serving North Serving Virginia i NirMe " Centra! PA Area P O Box 529 ! PO Box 937 133 W Davis St ! State College. PA 16801 Culpepper VA 22701 [ Ph 814 383 4355 Ph 703 825 3533 i | fr 1# ph.. w _ _ - I 1 spread is worth m Delaware these days—doesn’t net that kind of money Depending on the weather, some years you may not even make all your payments Other times you may have a good harvest and earn more than your family actually needs The trouble is, it’s never quite certain When was the last time you took a close look at the value of your farm 9 You could find yourself with an estate so big that, if you don’t make some plans now, a large part of it will go to taxes The more you’re worth, the more you need estate planning, says Tilmon Yet ironically, the less likely it is that someone will feel free to broach the subject to you— especially a child How can your family say to you, “Hey, we need to talk about what we’re going to do with the farm when you die ” It sounds so callous, somehow But the reluctance to discuss estate planning could cost a farm family potentially thousands of dollars If this sounds extreme, consider this. A farmer with an estate of $650,000 who fails to make the proper arrangements for the transfer of his estate to his wife and children before he dies could well leave them saddled with a tax burden which—by the time his wife dies, too—amounts to around $156,000 Had the same tanner and his wife established a marital trust during his lifetime, half of their estate would have gone to her after a $40,800 tax, while the other half could have passed directly to their children tax free. And income off that trust would have been available to his widow throughout the rest of her life In an emergency, even the principal could be drawn on so that she would always be well-cared for What’s more, this kind of advanced planning could have saved his family close to $116,000 in estate taxes Even if you know your heirs don’t intend to continue farming, a well-thought-out estate plan can drastically reduce their tax burden when you die Many farmers haven’t taken the steps to spare their families this kind of estate shrinkage. Others may have considered doing something but have taken no action Even if they have a will, it probably needs updating To encourage Delaware farmers to take a closer look at their own estate plans to acquaint them with all the various options open to them, Tilmon will hold a senes of community meetings around the state MEMO HAY, STRAW & EAR CORN SALE EVERY MONDAY At 11 A.M. NEW HOLLAND SALES STABLES, INC. Phone 717-354-4341 Lloyd H Kreider, Auct save your family farm this winter on the subject of estate management. Meetings are scheduled as follows- Clayton (Jan 26), Lewes (Jan. 27), Harrington (Jan, 28), Middletown (Jan. 29), Dover (Feb 2), Newark PIPELINE UNITS 28 Bou-matic 25 Surge 12 Sta-rite 10 Universal 10 DeLaval Some Pulsation Controllers for Most Brands Nit-Pulse Cochranville, PA 19330 215-932-4700 Only Authorized Distributor For PA, MD & NJ SO LANCASTER CO LAPPS HARDWARE & DAIRY SUPPLIES CO RD 4 Box 96 (Loop Rd j JAKE’S MILKER SERVICE Quarryville PA 17566 RL) 3 Waibontown PA I//// 71 7 786 3970 71/ 649 594/ LANCASTER CO T.S. BURKHOLDER ||M<« FniIIPMPNT FARM REFRIGERATION JIMS EQUIPMENT RD 2 Box 618 q Ri ,P°Dfl 6 ,ww, , Ephiata PA 17522 /f? 942 5928 717 859 1145 71/ 942 5928 AYNECO PENN VALLEY DONALD SCHMIDT CROPSTORE INC. RD l Box 258 A SchwenKsville PA 194/3 Hawley PA 1842 b 215 287 9650 71 / 253 2409 MONTGOMERY CO I WAN I TO KNOW MORE ABOUT BODMIN NURULbt - Name Addr City State Rhone uoumy Interested m Bodmin Milker Interested in Dealership (Feb. 5 ), Frankford (Feb 9), and Georgetown (Feb 11.). Check with your county extension office for times and locations, or call Don Tilmon at 302/738-2511. The meetings are designed KEYSTOI m MONTOUR THUMBERLAND, NOR lA. LUZERNE O SUSQUEHANNAO primarily for full-time farmers. But they should also be of interest to local lawyers, tax accountants, and other professionals commonly involved in estate planning BUCKET UNITS 10 Bou-matic 5 Universal 20 DeLaval with Sterling Pulsator CURT CASSADY MANAGER PH. 717-626-1065 Before7AM Alter6PM MARYLAND DON’S SALES & SERVICE RD 4 Box 42 Hagerstown, MD 21740 301 733 7281 iOUTHJERSEY WOODSTOWN INC & COAL COMPANY 50 E Grant Si Box 184 Woodstown N J 08098 609 769 0070 DAUPHIN, LEBANON & BERKS COs CLYDE C. LUTZ hphrdia PA 1/b22 l\l 788 1/18 LYCOMING CO JAMES LUCKENBILL RDJ Montgomery Pd \//o^ m 54/ ibjb DON CO HUNTINi CLAPPER FARM EQUIMENT, INC. Alexandria PA 1 fatal 1 814 fa 69 446 b
Significant historical Pennsylvania newspapers