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