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To: count-your-change

“Therein lies the value of planning ahead. Most farms are privately owned but could be converted to corporations with the heirs in control. When the parents are gone the corporation lives on.”


The estate tax is a tax on EVERYTHING you own and/or control at the time of death, including owned life insurance policies, with the tax being due and payable in nine months from date of death of the owner of the taxable property. So, if you convert your ownership from the land to shares of stock, you will still be paying an estate tax on the value of the stock in the corporation.

Owned farm land worth $10 million, owned corporate stock worth $10 million, the tax is the same. Should the owner of the land, converted to stock, gift the stock to kids, then a GIFT tax on the value of the gift of the stock, comparable to the estate tax will be assessed by the government.

Hopefully, you are not wandering around rendering estate tax advice, since you do not know squat.


42 posted on 11/24/2012 8:32:26 AM PST by LaMudBug
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To: LaMudBug

I’m not an expert on taxes which why I recommend planning ahead with someone is.

That said you are no expert either and your comments are worth every bit of the price. But bang on, Bug, bang on.


56 posted on 11/24/2012 9:12:45 AM PST by count-your-change (You don't have to be brilliant, not being stupid is enough.)
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