Estate Planning Can Save Taxes, Frustration

Writer: Tim W. McAlavy, (806) 746-6101, email: t-mcalavy@tamu.edu
Contact: Wayne Hayenga, (979) 845-2226, email: w-hayenga@tamu.edu
 
COLLEGE STATION – A properly drawn estate plan may save some farm and ranch families up to $200,000 in estate taxes, income taxes and administrative fees, according to a Texas A&M economist.

This applies to married couples who “like each other” and want to care for each other; who have property worth $2 million or more; and want to pass it on to their children and grandchildren.

“It’s an eye-opener for a lot of folks. In fact, many people only worry about estate planning if they hear of a friend’s ‘problem’ in settling an estate or paying estate taxes,” said Dr. Wayne A. Hayenga, Texas Cooperative Extension economist and attorney. “The estate tax savings may not be as large for families with smaller operations.

“Even so, for many families the income tax savings of a properly prepared estate plan can be greater than the estate tax savings.”

Texas Cooperative Extension will present four, two-day seminars discussing these complicated tax topics at the following locations this year:

 • March 25-26; Amarillo (Ambassador Hotel)
 • April 1-2; McKinney (Collin County Youth Park)
 • April 8-9; San Antonio (CPA Training Center)
 • April 22-23; College Station (College Station Conference Center)
 
The seminars are structured to help people learn how to lower their tax burden and ease administrative burdens that affect passing their estates to their loved ones. In addition to estate planning systems, Hayenga will address the tax savings possibilities of corporations, partnerships and trusts when family members are involved in the business.

“We will also cover making gifts to avoid estate taxes. There are two problems with making excessive gifts,” he said. “The first is dying poor. The second is the adverse income tax consequences the gift can cause the recipient. A properly planned estate can save many dollars in income taxes for the heirs.”

“We will also look at other problems that often affect family operations -- such as planning for inflation and growth of the business. And we will examine some options on how to treat all beneficiaries fairly. This applies to situations where one or more beneficiaries are interested in the family business, while others are not.”

Hayenga is an attorney as well as an Extension economist. He works extensively with farmers, ranchers and family-owned firms in financial, business and estate tax planning.

Seminar registration costs $100 per person. For more registration or seminar information, contact Sharon Wehring
at (979) 845-2226; or email s-wehring@tamu.edu.