Ozone Depletion and CFCs Madeline Midgett and Anna Lovelace.
1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family...
-
Upload
darcy-booth -
Category
Documents
-
view
219 -
download
0
Transcript of 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family...
![Page 1: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/1.jpg)
1
Farm Succession Farm Succession PlanningPlanning
![Page 2: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/2.jpg)
2
Marsha GoettingMarsha GoettingPh.D., CFP, CFCSPh.D., CFP, CFCSProfessor & Extension Family Economics SpecialistDepartment of Agricultural Economics & Economics
![Page 3: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/3.jpg)
3
Special Request from:
•Members of Planning Committee
![Page 4: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/4.jpg)
4
Make your estate planning presentation!!!!!!
LivelyLively InterestingInteresting ExcitingExciting
![Page 5: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/5.jpg)
5
Don’t want to think about
DeathDeathDyingDying
![Page 6: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/6.jpg)
6
ExperimentExperimentSuccession/Estate Succession/Estate
Planning Team Planning Team ContestContest
Valuable Valuable prizes !!!prizes !!!
![Page 7: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/7.jpg)
7
3 - 5 people3 - 5 people
Divide into Groups
![Page 8: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/8.jpg)
8
First Decision Select TeamSelect Team NameName30 Seconds30 Seconds
![Page 9: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/9.jpg)
9
Second Decision –Select Team Runner Each timeEach time your your
team team responds to responds to a question a questionWrite team name & Write team name &
answer on sticky answer on sticky note note
Ravalli Ravalli RaidersRaiders
50%50%
![Page 10: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/10.jpg)
10
RewardsRewards““Winning Winning Team”Team” gets to select gets to select prizes at the end prizes at the end of the sessionof the session
![Page 11: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/11.jpg)
11
“Who” Gets Your Property When You Die????
![Page 12: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/12.jpg)
12
State Law Determines
![Page 13: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/13.jpg)
13
Titled Real Property includes:
LandLand Home Home
![Page 14: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/14.jpg)
14
Titled Personal Property includes: Savings & Checking Savings & Checking
AccountsAccounts Certificates of DepositsCertificates of Deposits Motor VehiclesMotor Vehicles Stocks & Bonds Stocks & Bonds
![Page 15: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/15.jpg)
15
Property passes by: Contract Law Contract Law Written WillWritten Will Law of Decent & DistributionLaw of Decent & Distribution Trust Agreement Trust Agreement
![Page 16: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/16.jpg)
16
Contract Law Beneficiary DesignationsBeneficiary Designations
Life insurance Life insurance AnnuitiesAnnuities IRAsIRAs KeoghKeogh
![Page 17: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/17.jpg)
17
Life Insurance
BillBill VereVere
![Page 18: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/18.jpg)
04/18/23 18
Beneficiary Bill has $100,000 Bill has $100,000
life insurance policylife insurance policy Designates Vere as Designates Vere as
his primary his primary beneficiarybeneficiary
![Page 19: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/19.jpg)
04/18/23 19
Bill’s Will ““I bequest all myI bequest all mylife insurance life insurance proceeds to my son, proceeds to my son, Chris Shelton.”Chris Shelton.”
![Page 20: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/20.jpg)
04/18/23 20
Who gets $100,000?
Vere, wife?Vere, wife? Chris, son?Chris, son?
![Page 21: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/21.jpg)
04/18/23 21
$100,000 Life Insurance Proceeds VereVere Contractual Contractual arrangement arrangement Designated BeneficiaryDesignated Beneficiary
![Page 22: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/22.jpg)
04/18/23 22
Estate Planning Task Determine who Determine who are the are the beneficiaries of beneficiaries of your life insurance your life insurance policy/policiespolicy/policies
![Page 23: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/23.jpg)
04/18/23 23
Payable on Death Designation (POD)Accounts at financial Accounts at financial
institutionsinstitutions At death ownership At death ownership
passes to POD passes to POD beneficiariesbeneficiaries
![Page 24: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/24.jpg)
04/18/23 24
Transfers on Death (TOD) Registration
Stocks Stocks BondsBonds Mutual fundsMutual funds
![Page 25: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/25.jpg)
25
Dying Without a Will: Who Receives Your Property?
![Page 26: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/26.jpg)
04/18/23 26
PERSONAL PROPERTY
No matter where located, distributed according to laws of state in which decedent had domicile at time of death.
![Page 27: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/27.jpg)
04/18/23 27
REAL PROPERTY
Located outside state of residence distributed according to that state’s intestacy laws.
![Page 28: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/28.jpg)
04/18/23 28
Estate Planning Task What & WhereWhat & Where
Determine in whose Determine in whose name is on title of real & name is on title of real & personal propertypersonal property
LocationLocation
![Page 29: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/29.jpg)
29
Business Arrangements--2002 Census, Washington
Sole proprietorship/familySole proprietorship/family 85% 85%PartnershipPartnership 6% 6% CorporationCorporation 8% 8%Estates/trusts, other 1%Estates/trusts, other 1%40,033 farms40,033 farms
![Page 30: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/30.jpg)
30
Single PersonProperty in one Property in one
person’s name person’s name only.only.
Part of owner’s Part of owner’s estate upon estate upon death.death.
![Page 31: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/31.jpg)
31
Single PersonMother
1/2Dad
1/2
Single Guy/Gal
![Page 32: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/32.jpg)
32
What fraction (if any) will brother receive?
BachelorBrother
N iece
Sister
Nephew Nephew
SisterS ister Brother Brother
No Written Will
![Page 33: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/33.jpg)
33
Team Question What share What share if any does if any does Bother Bother receive?receive?
![Page 34: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/34.jpg)
34
What fraction (if any) will brother receive?
BachelorBrother
N iece
Sister
Nephew Nephew
SisterS ister Brother Brother
No Written Will
![Page 35: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/35.jpg)
35
BachelorBrother
Niece
1/4
Sister
Nephew
1/8Nephew
1/8
Sister Brother
1/4Brother
1/4
?
Right of Representation
![Page 36: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/36.jpg)
36
Married Couple John & MaryJohn & Mary
property titledproperty titled
John’s name only John’s name only (sole (sole proprietorship)proprietorship)
• No childrenNo children
![Page 37: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/37.jpg)
37
Auto Accident John dies firstJohn dies first Mary diesMary dies
3 days3 days later later
![Page 38: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/38.jpg)
38
Team Question Who Who receives the receives the property?property?
![Page 39: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/39.jpg)
39
Who Receives? John dies firstJohn dies first Mary diesMary dies
3 days3 days later later
![Page 40: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/40.jpg)
40
Who receives????? John dies firstJohn dies first Mary dies 3rd DayMary dies 3rd Day
Mary’s relatives receive propertyMary’s relatives receive property
![Page 41: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/41.jpg)
41
Need for will John & MaryJohn & Mary
need a written need a written will will
if they want to if they want to control who control who receives their receives their propertyproperty
![Page 42: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/42.jpg)
04/18/23 42
JOINT TENANCY Real Property
![Page 43: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/43.jpg)
43
JOINT TENANCY On death of On death of either, either, survivor survivor takes alltakes all
![Page 44: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/44.jpg)
44
JOINT TENANCY
CHILD AHIS
CHILD BHIS
HUSBAND
CHILD CHERS
CHILD DHERS
WIFE
![Page 45: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/45.jpg)
45
Husband dies: Survivors, wife surviving joint tenant; his children
CHILD AHIS
CHILD BHIS
HUSBANDCHILD C
HERSCHILD D
HERS
W IFE
![Page 46: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/46.jpg)
46
Husband dies: Survivors, wife surviving joint tenant; his children
CHILD A0
CHILD B0
HUSBANDCHILD C
HERSCHILD D
HERS
All
![Page 47: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/47.jpg)
47
Wife dies with all property
C H IL D AH IS
C H IL D BH IS
H U S B A N D
C H IL D CH E R S
C H IL D DH E R S
W IFE
![Page 48: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/48.jpg)
48
Wife dies with all property
C H IL D A
0C H IL D B
0
H U S B A N D
C H IL D C
50%C H IL D D
50%
W IFE
![Page 49: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/49.jpg)
49
Remarriage with husband as joint tenant
C H IL D A
0C H IL D B
0
H U S B A N D
C H IL D C
0C H IL D D
0
W IFE
husband
![Page 50: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/50.jpg)
50
Husband dies: Survivors, wife surviving joint tenant; his children
CHILD AHIS
CHILD BHIS
HUSBANDCHILD C
HERSCHILD D
HERS
W IFE
![Page 51: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/51.jpg)
51
Life Estate
CHILD AHIS
CHILD BHIS
HUSBANDCHILD C
HERSCHILD D
HERS
W IFE
Remaindermen
![Page 52: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/52.jpg)
04/18/23 52
Estate Planning Task Review titles Review titles on real on real propertyproperty
![Page 53: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/53.jpg)
53
Family Tree
Son
Son
Son Son Son
Son
HUSBAND
Daughter Daughter Son
Daughter
W IFE
![Page 54: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/54.jpg)
54
Question: What fraction, if any does grandchild receive?
grandchild
Son
grandchild grandchild
Son
HUSBAND
grandchild grandchild grandchild
Daughter
W IFE
?
![Page 55: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/55.jpg)
55
Survivors : 3 children
S on
1/3S on S on
1/3
Dad
D au g hte r D au g hte r S on
1/3
Mom
![Page 56: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/56.jpg)
56
Survivors : two children & grandchildren
1/3
S on
Son Son
1/3
H U S B A N D
D au gh ter D au gh ter Son
1/3
W IFE
Right of Representation
![Page 57: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/57.jpg)
57
Survivors : one child & grandchildren
1/3
S on
1/6 1/6
S on
H U S B A N D
1/3
W IFE
Right of Representation
![Page 58: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/58.jpg)
58
Survivors : One child & grandchildren
1/3
S on
Son Son
1/3
H U S B A N D
1/9 1/9 1/9
D au g h te r
W IFE
?
Right of Representation
![Page 59: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/59.jpg)
59
Survivors : Grandchildren
1/6
S on
1/6 1/6
S on
H U S B A N D
1/6 1/6 1/6
D au g h te r
W IF E
![Page 60: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/60.jpg)
60
Written Will
![Page 61: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/61.jpg)
61
Question What % of What % of Americans die Americans die without a without a written will?written will?
![Page 62: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/62.jpg)
62
7 out of 10 do not have a will
![Page 63: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/63.jpg)
63
Requirement Sound mindSound mind
Know nature of propertyKnow nature of property Know those to whom Know those to whom
he/she would give he/she would give propertyproperty
![Page 64: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/64.jpg)
64
““Being of Being of sound mind I sound mind I spent it all.”spent it all.”
Here is your DAD’S will
![Page 65: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/65.jpg)
65
MAKING A WILL Undue Undue InfluenceInfluence
![Page 66: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/66.jpg)
66
Adopted Children
Have same rights as Have same rights as your biological your biological children children
![Page 67: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/67.jpg)
67
MUST a parent leave his/her children anything?
NO!NO!
![Page 68: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/68.jpg)
68
“To my son I leave the pleasure of earning a living. For 25 years he thought the pleasure was mine. He was mistaken.”
Dad’s Will
![Page 69: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/69.jpg)
69
Heinrich HeineMade his wife sole beneficiary on the condition that she remarry because then
“there will be at least one man to regret my death”
![Page 70: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/70.jpg)
70
Non-Titled Property
Owner is Owner is not not identified with a identified with a written documentwritten document
![Page 71: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/71.jpg)
71
Non-titled property: GunsGuns ToolsTools FurnitureFurniture DishesDishes Linens & needleworkLinens & needlework CollectionsCollections
![Page 72: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/72.jpg)
72
Personal Belongings Wedding photographsWedding photographs Baseball gloveBaseball glove BooksBooks Christmas decorationsChristmas decorations JewelryJewelry
![Page 73: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/73.jpg)
73
WashingtonSeparate Listing Tangible Personal Property
![Page 74: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/74.jpg)
74
Separate Listing
ItemItemmy Grandma Ray’s Opal Ring my Grandma Ray’s Opal Ring my my
niece, Bethany Buczinskiniece, Bethany Buczinski
my Montana Sapphire Ringmy Montana Sapphire Ring my my friend, Barbara Millerfriend, Barbara Miller
DateDate SignatureSignature
![Page 75: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/75.jpg)
75
Where to keep a will?? Clerk of Court officeClerk of Court office Attorney’s officeAttorney’s office Safe deposit boxSafe deposit box Don’t store original at homeDon’t store original at home
![Page 76: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/76.jpg)
76
Where is the will?Where is the will? Inform family Inform family members or personal members or personal representativerepresentative
![Page 77: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/77.jpg)
77
Wills ????
![Page 78: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/78.jpg)
78
Question What % of deceased What % of deceased persons’ estates paid persons’ estates paid a federal estate tax a federal estate tax in 2003?in 2003?
![Page 79: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/79.jpg)
04/18/23 79
Federal Estate Tax
2 %2 %
![Page 80: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/80.jpg)
80
Federal Estate Tax Exclusions & Credits
Year Applicable Exclusion
Applicable Credit
2006-08 2,000,000 780,800 2009 3,500,000 1,455,800
![Page 81: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/81.jpg)
81
Planning Technique
Die inDie in
appropriateappropriate
year !!!year !!!
![Page 82: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/82.jpg)
04/18/23 82
Single Person-- Applicable Credit Year 2006-2008
Taxable Estate $2,000,000 Tentative Tax $780,800 Applicable Credit
$780,800
Estate Tax 0
Year 2006-2008
Taxable Estate $2,000,000 Tentative Tax $780,800 Applicable Credit
$780,800
Estate Tax 0
![Page 83: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/83.jpg)
83
Spouse takes all Spouse takes all Surviving spouse Surviving spouse who takes unlimited who takes unlimited marital deduction marital deduction
![Page 84: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/84.jpg)
04/18/23 84
$4 Million Estate (2007)--Unlimited Deduction Husband
Estate Value $4,000,000
Marital Deduct $4,000,000
Taxable Estate 0
Tentative Tax 0
Applicable Credit $780,800
Estate Tax 0
Husband
Estate Value $4,000,000
Marital Deduct $4,000,000
Taxable Estate 0
Tentative Tax 0
Applicable Credit $780,800
Estate Tax 0
![Page 85: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/85.jpg)
04/18/23 85
Wife: $4 Million 2007
Estate Value $4,000,000
Marital Deduct 0
Taxable Estate $4,000,000
Tentative Tax $1,700,800
Applicable Credit $780,800
Estate Tax $920,000
Estate Value $4,000,000
Marital Deduct 0
Taxable Estate $4,000,000
Tentative Tax $1,700,800
Applicable Credit $780,800
Estate Tax $920,000
![Page 86: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/86.jpg)
86
Instead take: Instead take: PartialPartial
equal to amount of equal to amount of exclusion/creditexclusion/credit
Leave rest to family trust with spouse Leave rest to family trust with spouse income income
![Page 87: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/87.jpg)
04/18/23 87
Use Dad’s Applicable Exclusion on 4M Estate Husband
Estate Value $4,000,000
Marital Deduct $2,000,000
Taxable Estate $2,000,000
Tentative Tax $780,800
Applicable Credit $780,800
Estate Tax 0
Husband
Estate Value $4,000,000
Marital Deduct $2,000,000
Taxable Estate $2,000,000
Tentative Tax $780,800
Applicable Credit $780,800
Estate Tax 0
![Page 88: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/88.jpg)
04/18/23 88
Mom’s Estate Husband
Estate Value $2,000,000
Marital Deduct 0
Taxable Estate $2,000,000
Tentative Tax $780,800
Applicable Credit $780,800
Estate Tax 0
Husband
Estate Value $2,000,000
Marital Deduct 0
Taxable Estate $2,000,000
Tentative Tax $780,800
Applicable Credit $780,800
Estate Tax 0
![Page 89: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/89.jpg)
04/18/23 89
Estate Size $4,000,000
Tax Savings Tax Savings With PlanningWith Planning
$920,000$920,000
![Page 90: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/90.jpg)
90
Concern Concern What if….. What if….. Mom marries Mom marries the “hunk” the “hunk” down the road?down the road?
![Page 91: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/91.jpg)
91
Concern Concern What if……… What if……… Dad marries the Dad marries the “floosie” down “floosie” down the road?the road?
![Page 92: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/92.jpg)
92
Another approach Another approach
Q-tip TrustQ-tip TrustAmount of Amount of exclusion/creditexclusion/credit
![Page 93: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/93.jpg)
04/18/23 93
Use Dad’s Applicable Exclusion on 4M Estate
Husband
Estate Value $4,000,000
Q-tip Trust $2,000,000
Taxable Estate $2,000,000
Tentative Tax $780,800
Applicable Credit $780,800
Estate Tax 0
Husband
Estate Value $4,000,000
Q-tip Trust $2,000,000
Taxable Estate $2,000,000
Tentative Tax $780,800
Applicable Credit $780,800
Estate Tax 0
![Page 94: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/94.jpg)
04/18/23 94
Mom’s Estate Husband
Q-tip Trust $2,000,000
Marital Deduct 0
Taxable Estate $2,000,000
Tentative Tax $780,800
Applicable Credit $780,800
Estate Tax 0
Husband
Q-tip Trust $2,000,000
Marital Deduct 0
Taxable Estate $2,000,000
Tentative Tax $780,800
Applicable Credit $780,800
Estate Tax 0
![Page 95: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/95.jpg)
04/18/23 95
Estate Size $4,000,000
Tax Savings Tax Savings With PlanningWith Planning
$920,000$920,000
![Page 96: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/96.jpg)
96
Team QuestionTeam Question Value of John’s gross estate for federal estate tax Value of John’s gross estate for federal estate tax
purposes?purposes? $2,500,000 Living Trust$2,500,000 Living Trust $ 100,000 Saving Bonds/POD $ 100,000 Saving Bonds/POD Wife Wife $ 150,000 Joint Tenancy/Son$ 150,000 Joint Tenancy/Son $ 250,000 Life Insurance Policy$ 250,000 Life Insurance Policy $ 500,000 Tenancy in Common with spouse$ 500,000 Tenancy in Common with spouse
![Page 97: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/97.jpg)
97
Team QuestionTeam Question Value of John’s estate?Value of John’s estate?
$2,500,000 Living $2,500,000 Living TrustTrust
IncludedIncluded
![Page 98: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/98.jpg)
98
Team QuestionTeam Question Value of John’s estate?Value of John’s estate?
$100,000 Saving $100,000 Saving Bonds/POD Bonds/POD Wife Wife
IncludedIncluded
![Page 99: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/99.jpg)
99
Team QuestionTeam Question Value of John’s estate?Value of John’s estate?
$150,000 Joint $150,000 Joint Tenancy/SonTenancy/Son
All included, unless contribution All included, unless contribution shownshown
![Page 100: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/100.jpg)
100
Team QuestionTeam Question Value of John’s estate?Value of John’s estate?
$250,000 Life $250,000 Life Insurance PolicyInsurance Policy
IncludedIncluded
![Page 101: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/101.jpg)
04/18/23 101
Insurance Proceeds included in estate if: Receivable by estateReceivable by estate Receivable by another for Receivable by another for
benefit of estatebenefit of estate Decedent hadDecedent had incidents of incidents of
ownershipownership
![Page 102: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/102.jpg)
102
$2.75 Million Estate $250,000 Policy 2007Parent OwnedEstate Value $2,500,000
Insurance 250,000
Taxable Estate $2,750,000
![Page 103: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/103.jpg)
103
Parent Owned Policy-2007
Estate Value $2,000,000 Insurance + 250,000 Taxable Estate $2,250,000 Tax 895,000 Applicable Credit 780,800 Estate Tax $115,000
![Page 104: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/104.jpg)
104
$2.75 Million Estate Child Owner of Policy
Parent Own
Child Owned
Estate Value $2,000,000 $2,000,000 Insurance 250,000 0 Taxable Estate $2,250,000 $2,000,000 Tentative Tax 895,000 780,800 Applicable Credit 780,800 780,800 Estate Tax $115,000 0
![Page 105: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/105.jpg)
105
Federal Estate Taxes Saved on $250,000 policy
Adult child as Adult child as owner of policyowner of policy save save
$115,000 $115,000
![Page 106: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/106.jpg)
106
Team QuestionTeam Question Value of John’s estate?Value of John’s estate?
$500,000 Tenancy in $500,000 Tenancy in Common with spouseCommon with spouse
½ half included ½ half included $250,000$250,000
![Page 107: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/107.jpg)
107
John’s Estate John’s Estate Value $3,500,000Value $3,500,000
Exemption 2007Exemption 2007 $2,000,000$2,000,000***$690,500 ***$690,500 due in taxdue in tax
![Page 108: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/108.jpg)
108
Federal Gift Tax
![Page 109: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/109.jpg)
109
Question What is the What is the
amount that can amount that can be gifted yearly be gifted yearly without a federal without a federal gift tax?gift tax?
![Page 110: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/110.jpg)
04/18/23 110
Annual Gifts $12,000
To as many peopleTo as many people as you wishas you wish
Tax freeTax free
![Page 111: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/111.jpg)
04/18/23 111
Gift-splitting Spouse may join Spouse may join in giftin gift
$24,000$24,000
![Page 112: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/112.jpg)
112
Federal Gift Tax Exclusions & Credits
Applicable Exclusion
Applicable Credit
$1,000,000 $345,800
![Page 113: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/113.jpg)
113
RewardsRewardsWinning Winning TeamTeam
![Page 114: 1 Farm Succession Planning. 2 Marsha Goetting Ph.D., CFP, CFCS èProfessor & Extension Family Economics Specialist èDepartment of Agricultural Economics.](https://reader036.fdocuments.net/reader036/viewer/2022062407/56649cf05503460f949bf8ea/html5/thumbnails/114.jpg)
114
Marsha A. Goetting MSU Extension Family
Economics Specialist
P. O. Box 172800P. O. Box 172800Montana State UniversityMontana State University
Bozeman, MT 59717Bozeman, MT 59717406-994-5695406-994-5695