THE BIGGER TAX RISK LIES BELOW.

The article discusses the significant changes in estate planning for farmers following the passage of the One Big Beautiful Bill Act, which raised the lifetime gift and estate tax exemption to $15 million. With the federal estate tax exemption at a historic high, most family farms are less likely to face estate taxes, shifting the focus to income tax planning and the importance of preserving the step-up in basis at death. The step-up in basis allows heirs to inherit property at its current market value, minimizing potential income taxes on appreciation. The article cautions against lifetime gifting, as it can lead to substantial income tax liabilities for recipients, emphasizing that careful planning is essential to protect family farms and legacies. [Extracted from the article]