Estate Planning News

How Do U.S. Farmers Plan for Retirement?

Retirement and succession planning are of considerable importance to farm households and there are good reasons to believe that they are affected by savings and retirement policies in ways that are different from the rest of the Nation's households. For example, compared with the U.S. labor force, farm operators are considerably older. In addition to working longer past traditional retirement age, farm operator households tend to have several income sources and different forms of wealth, as compared with the general population. While fewer farm operators are covered by employer-sponsored pensions than are nonfarmers, a majority of farm operators save from current income on a regular basis and have accumulated diversified financial portfolios, including individual retirement savings.

New Tax Laws Benefit Farmers—The American Jobs Creation Act of 2004 represents a major overhaul of U.S. Federal income tax laws applicable to farmers and other business taxpayers. A change in the law means a majority of commercial farms will pay lower Federal income taxes.

Contact our Rhode Island estate planning attorney now.

	Did You Know?
	A "Family Limited Partnership" can be used to own and manage your property In a similar manner to a Trust, but allowing additional tax planning techniques to be employed. Family Limited Partnerships are typically used for those who have large estates and thus have a need for specialized estate planning in order to minimize federal and state estate/death/inheritance taxes as well as provide elements of asset protection.