Monday, November 19, 2012

The new Death Tax increases means the Death for many family owned businesses, ranches and farms

Rancher Kevin Kester works dawn to dusk, drives a 12-year-old pick-up truck and earns less than a typical bureaucrat in Washington D.C., yet the federal government considers him rich enough to pay the estate tax -- also known as the "death tax." 
And with that tax set to soar at the beginning of 2013 without some kind of intervention from Congress, farmers and ranchers like Kester are waiting anxiously.
"There is no way financially my kids can pay what the IRS is going to demand from them nine months after death and keep this ranch intact for their generation and future generations," said Kester, of the Bear Valley Ranch in Central California. 
Two decades ago, Kester paid the IRS $2 million when he inherited a 22,000-acre cattle ranch from his grandfather. Come January, the tax burden on his children will be more than $13 million.
The full story is HERE and the related video below:

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1 comment:

Dumb Plumber said...

Mr. Kester needs to buy a vowel or get a clue, before posting his ignorance in the media. With Family Limited Partnerships, an A,B Life Insurance Trust, a carefully structured corporation, or an Irrevocable Trust all can be effective tools in avoiding, dodging or otherwise screwing the federal and state governments out of Death Taxes.

This isn’t rocket science people. This is prudent planning, just like planting winter wheat or castrating bulls, creating steers, for harvest later.

No, the real question is whether farmers, ranchers or businessmen are either too stupid or so greedy as to not plan for the future, to avoid the money grab by the governments.

I see the real issue as being like a runaway car, without brakes. Hey stupid, turn off the key and apply the emergency brake! Works every time.