Due to changes in the laws regarding asset transfers now may be a good time to consider estate planning. Recently, Congress passed a two year compromise on gifting assets. The compromise lets owners pass assets on to relatives or other parties up to $5 million tax free. Gifting farm assets is allowed up to $10 million tax free. In 2013, the compromise will be lifted, and many are taking advantage of passing on assets on to others to avoid paying extra tax.

There is some misconception and confusion concerning the law. Some states have inheritance and estate tax. The compromise will allow for bypassing these as well. Life insurance policies can be gifted or used in combination with other techniques, resulting in great economic benefits. Structuring property into a limited liability company could yield more results by using the laws that pertain to marketability and minority discounts.

Using trusts can be an effective means of asset protection. Like all estate planning tools it is important to work with an experienced professional that you can trust to handle the money that you have worked so hard for. When dealing with farms, the inheritance tax will be higher in 2013. Shifting the assets now to children or grandchildren would be more beneficial than doing it in the future.

Now may be a good time to consider shifting assets, property and life insurance policies. After 2012, tax exemption will only be up to $1 million. During this time, consider taking a look at how these to avoid unnecessary future tax burdens and passing along as much of your assets as possible to your loved ones rather than the IRS.

The Farm Press "Two-year window for estate planning opportunity," Lillian Dee Davenport and Lacey LaRue Nov. 17, 2011