Making your farm work for you, your family and charity
The average age of a farmer today in America is 57. The country has seen an increase of 30 percent in farmers who are older than 75, and a decrease in the number of farmers younger than 25 by 20 percent.
Farm assets are often liquidated by auctioning equipment and livestock and selling land. The profits are then available for retirement and estate planning. View Charitable Giving Vehicles.
Provide for you and your family
Typically, farmers stand to lose about half the value of their assets to taxes after liquidation. One solution is to put funds in a charitable remainder unitrust (CRUT).
Benefits of a CRUT:
- Hard-earned assets can be liquidated with minimal income tax.
- The trust provides for the farmer and his or her family financially.
- Long after the CRUT’s owner has passed, the funds continue to make an impactful difference for their family, church and community.
Case Study: Turning Their Lives into a Lasting Legacy
Harold and Lorraine Olson worried what would become of the assets of their farm – a place that had been the center of their lives for so many years, the place where they had raised a family and crops, blessed abundantly by God.
The Olson’s wanted to pass down their faith and the value of those blessings. TLHA presented the couple with a solution to financial concerns – a charitable remainder unitrust (CRUT). Read more.
Financial and Legal Considerations
Administration of a charitable remainder trust involves using an attorney who is familiar with philanthropic gifts and agriculture as well as holding, investing and distributing trust funds, filing unique IRS tax returns and state tax returns and, in some states, issuing an annual report to beneficiaries. Because of these requirements, a CRT has the most value for all involved when the initial proceeds are at least $100,000, while a CGA has the most value when the gift is at least $10,000.
TLHA has become a preferred partner for those with appreciated assets of any kind who wish to avoid high income and capital gains taxes while using their assets to benefit family, faith and community.