The Importance of Estate Plans for Farmers
Authored by: Troy Hilyard – Partner, CPA
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Life on a farm is filled with physical and financial risks. Farmers face unpredictable weather, market fluctuations, and the very real threat of injury or accident—challenges that can drastically impact their livelihoods. The realities of farming make it one of the riskiest occupations in the U.S., placing countless lives and futures at stake.
Statistically, farming is far more dangerous than many other industries. According to the U.S. Bureau of Labor Statistics, farming has a fatality rate of 23.1 deaths per 100,000 workers, and many farmers don’t make it to retirement age. Nearly one in five farmers are hurt or killed on the job before retirement. This underscores the importance of preparing for the future early.
In comparison, the manufacturing industry has a much lower fatality rate of just 2.1 per 100,000 workers. For office-based jobs, the rate is even lower—under 1 death per 100,000 workers. This gap highlights the unique and intense risks farmers face daily, underscoring the importance of having an estate plan that protects their families and secures their legacy.
Estate Planning: Beyond a Simple Will
An effective estate plan goes beyond just a will; it includes crucial documents like a power of attorney (POA), healthcare directives, and trusts, all designed to protect assets and reduce financial stress for your loved ones. For farmers, estate planning is particularly essential because of the significant value tied to land, equipment, and other resources that can trigger estate taxes or complicated probate issues for surviving family members. A well-crafted estate plan can alleviate these concerns, minimizing taxes and creating a smooth transition for your family.
When creating an estate plan, farmers should explore several tax-saving strategies to help preserve the value of their land, equipment, and other assets for their heirs. Without proper planning, estate taxes, capital gains taxes, and probate costs can consume a significant portion of the family’s inheritance.
Partnering with Professionals to Secure Your Farm’s Future
Working alongside a knowledgeable attorney and accountant experienced in farm estates is key to effective planning. These professionals can guide you in crafting a personalized estate plan, minimizing tax burdens, and ensuring the continued success of your farm.
At MBE CPAs, our team of experienced accountants and advisors are dedicated to helping you develop a comprehensive plan that preserves your assets and protects your family’s future. With our expertise, you can confidently secure your farm’s legacy for generations to come.
Start your planning journey with MBE CPAs today. Contact us to discuss your estate planning options and take the first step in safeguarding what matters most. Don’t wait—plan now for peace of mind and a lasting legacy.