Today’s Harvest Blog

A successful farm transition is about more than transferring land, equipment or ownership interests. It is about preparing people to work together, aligning the team around a shared vision and using thoughtful financial strategies to protect the wealth built through generations of hard work. When coordinated, they can provide a clearer path for the current generation, the next generation and the farm itself.

In April, we discussed that the Supreme Court was hearing arguments in the Connelly v U.S. case regarding life insurance proceeds. With this case now decided, it will be important for individuals and small businesses owning life insurance to fund buy/sell agreements to include a review of these policies.

In the context of farming business structures, acquiring a life insurance policy is a prevalent practice. Here are two common scenarios and an update on an ongoing Supreme Court case involving the IRS concerning the valuation of businesses when insurance payouts are implicated and whether such proceeds are deemed liabilities or not.