A common dilemma among agricultural families is how to be fair to both on-farm and off-farm children. Because the assets of a farm or ranch typically represent the vast majority of an agricultural family’s net worth, there are typically few assets to leave off-farm kids.

Life insurance can serve a number of purposes for the agricultural family. Besides providing for the continuation of income in the event of a breadwinner’s death, life insurance can do the following:

There are many important financial issues to be aware of when selling a farm or ranch. Planning for a sale with a team of advisers well in advance of a sale is critical for identifying these issues and for implementing strategies to effectively deal with them. One of the biggest issues is the income tax that can result from a sale.

The IRC Section 1031 Exchange is one of the most powerful tax-saving and wealth-building tools available for people selling highly appreciated real estate.

If you are considering selling a farm or ranch, there are important tax and financial planning issues of which you need to be aware. Engaging in planning prior to a sale is critical for identifying these issues and for implementing strategies to effectively address them.